An acquisition of a company for the purposes of changing the company's status from a publicly-traded company to a private company is best described as a:
A) diversifying.
B) going private.
C) public offering.
D) going backward.

Question

Quizplus · Accepted Answer

A going private transaction involves the acquisition of a publicly traded company in order to convert it into a private entity. This means the company's shares are no longer traded on public stock exchanges, and it is no longer required to adhere to the stringent reporting requirements of public companies.

An Acquisition of a Company for the Purposes of Changing