Question 4 When a firm purchases shares directly from a major shareholder it is also known as a(n) O open market purchase O tender offer O targeted repurchase O greenmail
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Question 4 When a firm purchases shares directly from a major shareholder it is also known as a(n) O open market purchase O tender offer O targeted repurchase O greenmail
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- Question 1 LBO funds exit their investments primarily through the IPO process. O True O FalseA closed‑end investment company Question 11 options: a) has a fixed capital structure. b) issues new shares when an individual invests. c) redeems its shares. d) charges a loading fee.._______ An offer to purchase the stock of a firm targeted for acquisition.
- A rights offering that gives existing target shareholders the right to buy shares in either the target or the acquirer at a deeply discounted price once certain conditions are met is called a: A. Golden parachute B. Poison pill C. White knight D. Classified board9. Multiple Choices The corporation has the option to repurchase the preferred stock at a specified price. a. redeemable b. cumulative c. convertible d. compound e. callable f. treasuryWhich of the following statement about a rights issue is correct? a. The share price can be expected to increase on the ex-rights date b. On the ex-rights date the rights separate from the share c. The subscription price is usually greater than the market price d. A rights issue is offered to an investor whether they are an existing shareholder or not e. If you buy shares cum-rights you are not entitled to participate in the rights issue
- In a _____, the managers of the firm purchase the outstanding shares and take the firm private. Select one: a. asset acquisition b. vertical acquisition c. proxy contest d. tender offer e. management buyoutQuèstion 10 Preferred stockholders have the following rights EXCEPT: O A. the priority over common stock in dividend distribution. O B. a stated dividend rate. Oc, the right to sell their stock on the market. O D. voting rights.An offering of shares to institutional investors at a discount to the current market price is known as a: Select one: a. Initial Public Offering (IPO). b. Private Placement c. Rights Issue d. Dividend Reinvestment Plan (DRP).
- A debenture is ABU DA equity capital of the company another name for share capital a loan convertible into shares in the future a loan usually secured on the business' assetsWhich one of the following is a primary market transaction? Multiple Choice Sale of currently outstanding stock by a dealer to an individual investor Sale of a new share of stock from a corporation to an individual investor Transfer of stock ownership from one shareholder to another shareholder Gift of stock from one shareholder to a previous non-shareholder Repurchase of stock by a corporation from a shareholderQ5 Which of the following options is correct? Select one: a. Equity represent the net assets of the entity b. An entity can always redeem its shares when it has the excess resources to do that c. Long-term liabilities are part of the owners’ equity d. Preference shareholders are the last to be satisfied among all the stakeholders of the business entity.
