Which of the Following Are True Concerning Private Transactions

question 11

Multiple Choice

Which of the following are true concerning private transactions?
I.Most are done to financial buyers.
II.They tend to capture value more quickly.
III.Fiscal implications may affect the decision.
IV.They are usually a better choice if identifiable buyers exist.

• A)I and II only.
• B)I,II,and III only.
• C)II,III,and IV only.
• D)I,II,III,and IV.

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Definitions:

Convertible Preferred Stock

A type of preferred stock that holders can convert into a predetermined number of common shares, usually at any time after a specific date.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a company and entitles the holder to a share of the company's profits through dividends and/or capital appreciation.

Dividend

Money distributed to shareholders by a company, usually sourced from its profits.

Cumulative Preferred Stock

A type of preferred stock that accumulates unpaid dividends, which must be paid out before any dividends can be distributed to common stockholders.