Selling shareholders who are offered cash or another company's shares in a merger may be willing to part with the shares they hold because

Question

Quizplus · Accepted Answer

All of the other answers are valid reasons why selling shareholders may be willing to part with their shares in a merger. Some may see the offered shares or cash as more marketable, while others may be enticed by a price above book or market value. Additionally, the offer may provide them with the opportunity to diversify their holdings.

Selling Shareholders Who Are Offered Cash or Another Company's Shares