Which One of the Following Statements Is TRUE

question 45

Multiple Choice

Which one of the following statements is TRUE?

• A) a targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders.
• B) an example of asset switching is an option to exchange one piece of real estate for another.
• C) a shareholder-friendly charter will make it harder for a company to be acquired.
• D) a targeted share repurchase can be used to encourage a hostile takeover.
• E) anti-takeover charter provisions are good for shareholders because they prevent a raider from stealing the company for a below-market price.

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Definitions:

Dealer Market

A financial market mechanism wherein buy and sell transactions are made through a dealer, or market maker, rather than through a centralized exchange.

Auction Market

A marketplace where buyers and sellers enter competitive bids simultaneously, with the price determined through the interaction of these bids.

NASDAQ

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

NYSE

The New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world, where public companies' stocks are bought, sold, and traded.