Equity Investors in a Private Company Usually Plan to Realize

question 96

True/False

Equity investors in a private company usually plan to realize a return on their investment by selling their stock when that company is acquired by another firm or sold to the public in a public offering.

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Definitions:

Proposed Combination

A plan or proposal to merge two or more entities or assets into a single consolidated entity.

Dissolution

The process of formally ending or dissolving a company, partnership or any legal entity so it no longer exists as a legal entity.

Merger

The combination of two or more companies into a single entity, often with the goal of achieving greater efficiency, market share, or competitiveness.

Consolidation

The process of combining multiple accounts or businesses into a single entity, often for strategic, financial, or operational efficiency reasons.