By offering to give shareholders in Grassroots Corporation stock in Grow True Corporation in return for shares of stock in Grassroots Corporation, Grow True Corporation made a[n] ________.
A) Exchange offer
B) Stock tender offer
C) Hostile offer
D) Illegal offer
E) Control tender offer

Question

Quizplus · Accepted Answer

An exchange offer involves offering shareholders the option to exchange their shares for shares in another company, which is what Grow True Corporation is doing by offering its stock in return for Grassroots Corporation stock.

By Offering to Give Shareholders in Grassroots Corporation Stock in Grow