Which of the Following Statements Best Describes the Average Stock

question 14

Multiple Choice

Which of the following statements best describes the average stock price reactions to mergers?

• A)Both the target's and the acquirer's share prices increase slightly.
• B)Both the target's and the acquirer's share prices increase substantially.
• C)The target's share price increases substantially,while the acquirer's share price falls substantially.
• D)The target's share price increases substantially,while the acquirer's share price increases only slightly.
• E)The target's share price falls slightly,while the acquirer's share price increases substantially.

---

Definitions:

Wrongful Act

Any action that infringes on the rights of another or is illegal, leading to potential legal liability.

Tort

A wrongful act in a civil context that results in harm or loss for the affected individual, thereby establishing legal accountability for the one committing the act.

Arm's-Length Transaction

A deal made by parties freely and independently of each other, and without some special relationship, such as a familial tie, that might taint the transaction.

Confidentiality

The obligation to protect and not disclose information that is private, sensitive, or classified to unauthorized individuals.