Exploitation of minority shareholders by the majority shareholders is called:
A) reverse stock split
B) tunneling
C) exploitation
D) none of the above

Question

Quizplus · Accepted Answer

Tunneling refers to the practice of exploiting minority shareholders by majority shareholders by shifting assets or resources away from the company and towards themselves or other related entities. This can involve tactics such as diverting profits, selling assets at undervalued prices or engaging in self-dealing transactions. This can lead to significant losses for minority shareholders and can ultimately harm the company's overall performance.

Exploitation of Minority Shareholders by the Majority Shareholders Is Called