ABC Co. makes a tender offer to acquire 3% of the stock of XYZ Co. This is considered a stock acquisition, and ABC must file with the SEC.

Question

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A stock acquisition is considered a corporate takeover, and occurs when one corporation (suitor) makes a tender offer to the shareholders of another corporation (target). Whenever a suitor makes an offer to acquire more than five percent (5%) of the target, the suitor must file with the SEC.

ABC Co Makes a Tender Offer to Acquire 3% of the the Stock