A Forward Triangular Merger Is the Most Commonly Used Form

question 83

True/False

A forward triangular merger is the most commonly used form of reorganization for tax-free stock acquisitions in which the form of payment is acquirer stock. It involves three parties: the acquiring firm, the target firm, and a shell subsidiary of the target firm.

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Definitions:

Shelf Registration

A regulatory process that allows a company to register a new issue of securities without having to sell the entire issue at once.

Securities

Financial instruments representing some type of financial value, such as stocks, bonds, or options.

Knowledgeable Investors

Individuals or entities that possess an understanding and experience in financial and business matters, making them capable of evaluating investment risks and merits.