A Common Technique Used During the 1990s Was to Wait

question 76

True/False

A common technique used during the 1990s was to wait for favorable periods in the stock market to sell a portion of the LBO's equity to the public. The proceeds of the issue would be used to repay debt, thereby reducing the LBO's financial risk.

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Definitions:

Sliprings

Circular bands of metal placed on the rotating part of a machine. Carbon brushes riding in contact with the sliprings provide connection to the external circuit.

Commutators

A mechanical switch used in some electric motors and electrical generators to reverse the direction of current flow in the coils.

Hydrogen Atmosphere

An environment or a setting that predominantly contains hydrogen gas (H2).

Efficiency

The ratio of the useful output of a system to the input, expressed in percentage, indicating the system's ability to convert energy or resources into output effectively.