Which of the following is the best deﬁnition of a stock exchange bid?
A) Combinations of ﬁrms that have been joined by merger, consolidation, or acquisition.
B) A public offer by one ﬁrm to directly buy the shares from another ﬁrm.
C) The positive incremental net gain associated with the combination of two ﬁrms through a merger or acquisition.
D) Agreement between ﬁrms to cooperate in pursuit of a joint goal.
E) Corporate takeover bid communicated to the shareholders through a stock exchange.

Question

Quizplus · Accepted Answer

A stock exchange bid refers to a corporate takeover bid that is communicated to the shareholders of a company through a stock exchange. This is typically done when one company wants to acquire another company by purchasing its shares from the shareholders. Therefore, option E is the best definition of a stock exchange bid.

Which of the Following Is the Best Deﬁnition of a Stock