The control market is applicable when which of the following conditions are true?

Question

Quizplus · Accepted Answer

The control market becomes particularly relevant under conditions where capital markets are illiquid, equity ownership is heavily concentrated, board members are largely insiders, and there is a significant overlap between ownership and control. These factors contribute to a scenario where the traditional market mechanisms for corporate control (such as takeovers) are less effective, making alternative control mechanisms more important.

The Control Market Is Applicable When Which of the Following