A Large Amount of Trading Following a Hostile Tender Offer

question 84

Multiple Choice

A large amount of trading following a hostile tender offer is a good sign for the acquirer because:

• A) The shares are moving from regular investors into the hands of arbitrageurs.
• B) A competing offer is likely.
• C) The acquirer will pay a lower premium for the shares.
• D) A large amount of trading is a bad sign for the acquirer.

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Definitions:

Muscle

A tissue in the body of animals that is capable of contracting and causing movement or maintaining a position.

Ligaments

Tough, elastic bands of tissue that connect bones or cartilage, providing support and limiting movement.

Tenodesis

A surgical procedure to attach the end of a tendon to a bone.

Malignant Tumor

A cancerous growth that can invade and destroy surrounding tissue and has the potential to spread to other parts of the body.