When the Management And/or a Small Group of Investors Take

question 28

Multiple Choice

When the management and/or a small group of investors take over a firm and the shares of the firm are delisted and no longer publicly available, this action is known as a:

• A)consolidation.
• B)vertical acquisition.
• C)proxy contest.
• D)going-private transaction.
• E)None of the above.

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Definitions:

Transparent

Characterized by openness, communication, and accountability, allowing for clear visibility into processes, operations, or transactions.

Trading Volume

The total quantity of shares or contracts traded for a specific security or market during a specified period.

General Claim

A broad assertion or demand for rights, money, or property without specificity or restriction.

Collateral Bond

A type of bond that is secured by a specific pledge of collateral.