A Large Amount of Trading Following a Hostile Tender Offer

question 58

Multiple Choice

A large amount of trading following a hostile tender offer is a good sign for the acquirer because:

• A)The shares are moving from regular investors into the hands of specialists.
• B)A competing offer is likely.
• C)The acquirer will pay a lower premium for the shares.
• D)A large amount of trading is a bad sign for the acquirer.

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Definitions:

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

A variable in experimental research that is expected to change as a result of manipulations in the independent variable.

Cause-Effect Relationship

A relationship where one event (the cause) makes another event happen (the effect), demonstrating a connection between actions and outcomes.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.