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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