Which of the Following Most Accurately Describes the Types of Mergers

question 115

Multiple Choice

Which of the following most accurately describes the types of mergers that antitrust laws are intended to prohibit?​

• A)Mergers that tend to reduce competition
• B)Horizontal mergers
• C)Both vertical and horizontal mergers
• D)Conglomerate mergers
• E)Vertical mergers

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Definitions:

Reverse Split

A corporate action which consolidates the number of existing shares of stock into fewer, proportionately more valuable, shares.

Shares Outstanding

Shares outstanding refers to the total number of shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Long-Term Payout Ratio

The proportion of earnings paid out as dividends to shareholders over an extended period, often used as a measure of a company's dividend policy stability.

Dividend Policy

The approach a firm employs to determine the amount of dividends it will distribute to its shareholders.