Which One of the Following Statements Is TRUE

question 15

Multiple Choice

Which one of the following statements is TRUE?

• A) A targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders.
• B) An example of asset switching is an option to exchange one piece of real estate for another.
• C) A shareholder-friendly charter will make it harder for a company to be acquired.
• D) A targeted share repurchase can be used to encourage a hostile takeover.
• E) Anti-takeover charter provisions are good for shareholders because they prevent a raider from stealing the company for a below-market price.

---

Definitions:

Common Shareholders

Individuals or entities that own common stock in a corporation, thus holding a share of the ownership and typically having voting rights.

Public Company

A company whose shares are traded freely on a stock exchange, subject to regulatory and reporting requirements.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the shares remains the same.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders.