Selling stockholders who are offered cash or another company's stock in a merger may be willing to part with the shares they hold because

Question

Quizplus · Accepted Answer

The selling stockholders may be willing to part with their shares for any of the three reasons mentioned in the answer choices: they may find the offered shares more marketable, the price offered may be above market value, or they can attain better diversification. Therefore, all of the options listed may motivate selling stockholders to sell their shares.

Selling Stockholders Who Are Offered Cash or Another Company's Stock