In A(n) ____________, the Managers of the Firm Purchase the Shares

question 282

Multiple Choice

In a(n) ____________, the managers of the firm purchase the shares outstanding in the open market and take the firm private.

• A) Proxy contest.
• B) Tender offer.
• C) Vertical acquisition.
• D) Management buyout.
• E) Asset acquisition.

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Definitions:

Rule 10b-5

A regulation under the U.S. Securities Exchange Act of 1934, designed to prevent fraud in the securities market.

Securities Act of 1934

U.S. federal law focusing on the regulation of the secondary trading of securities (stocks, bonds, and debentures) in the United States.

Scienter

A legal term used to refer to a party's knowledge of the wrongfulness or fraudulent nature of their actions.

Williams Act

A subset of the Securities Exchange Act of 1934, regulating tender offers and requiring disclosure of information by anyone seeking to acquire more than 5% of a company's securities.