Which of the Following Statements About Proxy Contests Is True

question 22

Multiple Choice

Which of the following statements about proxy contests is true?

• A)They tend to be far more successful than hostile takeover attempts.
• B)They are fairly expensive and have a low probability of success.
• C)They are typically used in conjunction with "friendly" takeovers.
• D)Although they are almost costless to execute, they are rarely effective.

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Definitions:

Bondholders

Investors who are the legal owners of bonds, which are debt securities issued by corporations or governments.

Interest Payments

Regular payments made by a borrower to a lender, compensating the lender for the opportunity cost of lending money.

Bond Rating

An assessment of the credit quality of a bond by rating agencies, indicating its creditworthiness.

Capital Markets

Financial markets for buying and selling equity and debt instruments, including stocks and bonds, facilitating capital formation and growth.