Most of the time the "target" firm will enjoy a share price decrease when its acquisition is announced to the public.

Question

Quizplus · Accepted Answer

This statement is not always true. Sometimes the announcement of an acquisition can cause the share price of the target firm to increase, especially if the acquiring firm is offering a premium price for the shares. It ultimately depends on various factors such as the perceived value of the deal, market conditions, and investor sentiment.

Most of the Time the "Target" Firm Will Enjoy a Share