A ________ is when a rich individual or organization purchases a large fraction of the stock of a poorly performing firm and in doing so gets enough votes to replace the board of directors and the CEO.

Question

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This scenario best describes a hostile takeover, where an entity buys a significant amount of a struggling company's stock with the intention of taking control of the company by replacing its leadership. A shareholder proposal is a request made by a shareholder to a company's management, usually recommending a change in policy or action. A leveraged buyout involves using significant amounts of debt to finance the purchase of a company, often resulting in the new owners taking control of the company. A shareholder action could refer to a variety of actions taken by shareholders, such as voting in elections or making proposals, and is not specific to taking over a company.

A ________ Is When a Rich Individual or Organization Purchases