A(n)________ May Occur If a Major Shareholder Desires to Sell

question 66

Multiple Choice

A(n) ________ may occur if a major shareholder desires to sell a large number of shares but the market for the shares is not sufficiently liquid to sustain such a large sale without severely affecting the price.

• A)open market share repurchases
• B)Dutch auction share repurchase
• C)tender offer
• D)targeted repurchase

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Definitions:

Paid-In Capital

Funds raised by a company from equity, and not from ongoing operations, reflected on the balance sheet.

Treasury Stock

Shares that were once outstanding and have been bought back by the issuing company, reducing the amount of stock on the open market.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its financial position.