If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves,this is referred to as:
A)Capitalizing.
B)Stock turning.
C)Turning the equity.
D)Taking the firm private.

Question

Quizplus · Accepted Answer

Taking the firm private refers to the process of buying all outstanding shares of a publicly traded company by a group of stockholders or management, making it a privately owned company. This is also known as "going private" and is often done to avoid the regulatory and reporting requirements of being a publicly traded company.

If a Group of Stockholders or Management Obtain All the Stock