A transaction involving only one ﬁrm, which results in a stock being delisted and no longer available to the public is a(n):
A) Reverse IPO.
B) Proxy acquisition.
C) All cash merger.
D) All stock merger.
E) Going-private transaction.

Question

Quizplus · Accepted Answer

A going-private transaction is a transaction involving only one firm and results in the stock being delisted and no longer available to the public. This occurs when a company buys back all outstanding shares or is acquired by a private equity firm.

A Transaction Involving Only One ﬁRm, Which Results in a Stock