An Acquiring Firm Cannot Use Its Own Shares as Consideration

question 15

True/False

An acquiring firm cannot use its own shares as consideration in a market takeover bid.

---

Definitions:

Spot Rate

The current market price at which a currency can be bought or sold for immediate delivery and payment.

Forward Rate

A financial term describing the agreed-upon exchange rate for currencies to be exchanged at a future date between parties.

Foreign Exchange Gain

A profit arising from the increase in value of one currency against another.

Exchange Rates

The rate at which one currency can be exchanged for another, which can fluctuate based on market conditions.