A Minority Squeeze-Out Occurs When

question 55

Multiple Choice

A minority squeeze-out occurs when:

• A)Minority shareholders change the top management of the firm.
• B)When an acquirer owns 90% of the shares, the minority of the shareholders are forced to sell their shares for the takeover price.
• C)A small minority of shareholders frustrate a fair bid that has already been accepted by a majority of shareholders.
• D)All of the above.

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Definitions:

Simple Interest

A method of calculating interest where the calculation is based only on the original amount of money invested or borrowed, excluding the effect of compounding.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Personal Line

A type of credit product that allows individuals to borrow up to a pre-approved limit on an as-needed basis.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference for other rates.