A(n)________ May Occur If a Major Shareholder Desires to Sell

question 38

Multiple Choice

A(n) ________ may occur if a major shareholder desires to sell a large number of shares but the market for the shares is not sufficiently liquid to sustain such a large sale without severely affecting the price.

• A)open market share repurchase
• B)Dutch auction share repurchase
• C)tender offer
• D)targeted repurchase

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Definitions:

Invalid

Not legally or factually sound; without force or effect.

Unenforceable

Describes a contract or agreement that, due to legal deficiencies or irregularities, cannot be legally upheld or enforced.

Contract Clause

A provision included in a contract that specifies the obligations, rights, or restrictions for the parties involved.

Restitution

The act of restoring or returning something to its rightful owner or compensating for loss, damage, or injury caused.