In an Ordinary Merger,if the Number of Voting Shares Increases

question 73

Multiple Choice

In an ordinary merger,if the number of voting shares increases by 20 percent or less,this eliminates which needed approvals when compared to ordinary mergers where the number of shares increases by more than 20 percent?

• A) shareholders of the surviving corporation
• B) shareholders of both corporations
• C) shareholders and the board of directors of the surviving corporations
• D) shareholders and the board of the corporation that does not survive
• E) The approval requirements are the same whether the increase in voting shares of the surviving corporation is more or less than 20 percent.

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Definitions:

Underwriting Fee

A fee charged by underwriters for assessing, guaranteeing, and distributing a new issue of securities to the public.

Common Stock

A type of ownership in a corporation that grants holders voting rights and a share in the company’s profits via dividends.

Rights Offering

Rights offering is a financial opportunity provided to existing shareholders to purchase additional shares directly from the company at a predetermined price, usually lower than the market price, before the shares are offered to the public.

Subscription Price

The price at which existing shareholders are allowed to purchase new shares of a company, often during a rights offering.