A deal in which all publicly owned stock in a ﬁrm is replaced with complete equity ownership by a private group is called a:
A) Tender offer.
B) Proxy contest.
C) Going-private transaction.
D) Leveraged buyout.
E) Consolidation.

Question

Quizplus · Accepted Answer

A going-private transaction involves the complete equity ownership of a firm by a private group, which means that all publicly owned stock in the firm is replaced. This can be accomplished through various means, such as a management buyout or a leveraged buyout. Tender offers and proxy contests do not necessarily result in complete equity ownership by a private group, and consolidation refers to the merger of two or more companies.

A Deal in Which All Publicly Owned Stock in a ﬁRm