A Bidder May Choose to Use Cash Rather Than to Issue

question 124

True/False

A bidder may choose to use cash rather than to issue voting shares if the voting control of its dominant shareholder is threatened as a result of the issuance of voting stock to acquire the target firm.

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Definitions:

Loss of Funds

The reduction or depletion of monetary assets, often due to mismanagement, investment losses, or theft.

Banking Concerns

Issues or problems related to the operations, services, or stability of banks and financial institutions.

Electronic Check

An electronic check, or e-check, is a digital version of a traditional paper check, used to make payments online by transferring money from the payer's checking account.

Internet

A vast global network that connects computers around the world, enabling users to share information and communicate.