A Hostile Takeover Involves an Attempt by One Group of Shareholders

question 12

True/False

A hostile takeover involves an attempt by one group of shareholders to solicit votes from other shareholders in order to put a new management team into place and is usually motivated by low share price.

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Definitions:

Cash Dividend

A distribution of a company's earnings to its shareholders in the form of cash.

Passive Investment

An investment strategy involving minimal buying and selling actions, typically focused on long-term gains and avoiding frequent trading.

Common Stock

A type of security that represents ownership in a corporation and grants shareholders voting rights and a share in the company's profits through dividends.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties in an arm's length transaction.