Which of the Following Is the Best Definition of a Shareholder

question 252

Multiple Choice

Which of the following is the best definition of a shareholder rights plan?

• A) The splitting up of a company into two or more companies.
• B) The distribution of shares in a subsidiary to existing parent company shareholders.
• C) Provisions allowing existing shareholders to purchase stock at some fixed price should an outside takeover bid take place, discouraging hostile takeover attempts.
• D) Attempts to gain control of a firm by soliciting a sufficient number of shareholder votes to replace existing management.
• E) A financial device designed to make unfriendly takeover attempts unappealing, if not impossible.