The amount of money above market value paid to a controlling shareholder for his shares is known as a

Question

Quizplus · Accepted Answer

The amount of money paid above market value to a controlling shareholder for his shares is known as a control premium. This premium is paid to gain control of the company and is often paid by another company or investor looking to acquire the company. Other options such as corporate asset, freeze out premium, and golden parachute are not appropriate terms to describe this scenario.

The Amount of Money Above Market Value Paid to a Controlling