When the management and/or a small group of investors take over a ﬁrm and the shares of the ﬁrm are delisted and no longer publicly available, this action is known as a:
A)consolidation.
B)vertical acquisition.
C)proxy contest.
D)going-private transaction.
E)None of the above.

Question

Quizplus · Accepted Answer

This action is known as a going-private transaction, where the company's ownership shifts from being publicly traded to privately held. The management and/or a small group of investors typically finance this transaction, which results in delisting the company's shares from public stock exchanges. Consolidation refers to a merger or acquisition between two companies. Vertical acquisition refers to the acquisition of a supplier or distributor of a company's products or services. A proxy contest is a battle for control of a company, typically between shareholders and the management team or board of directors.

When the Management And/or a Small Group of Investors Take