__________ Occurs When a Raider Acquires Stock in a Target

question 59

Multiple Choice

__________ occurs when a raider acquires stock in a target company and then threatens to commence a hostile takeover unless the stock is repurchased by the target at a premium over the market price.

• A) Revlon mode
• B) The Van Gorkom test
• C) The Unocal proportionality test
• D) Greenmail

---

Definitions:

Mark To Market

An accounting method that assesses the value of assets based on their current market prices.

Valuation

The process of determining the current worth of an asset or a company.

Market Prices

Refers to the current price at which an asset or service can be bought or sold in a given market.

Trend Analysis

An analysis of a firm’s financial ratios over time. It is used to estimate the likelihood of improvement or deterioration in its financial situation.