Which of the following statements is incorrect?
A) A mutual-to-stock conversion allows savings institutions to obtain additional capital by issuing stock.
B) Because of their ownership structure, mutual savings institutions are more susceptible to unfriendly takeovers.
C) When a mutual savings institution is involved in an acquisition, it first converts to a stock-owned savings institution.
D) Consolidation and acquisitions have caused the number of mutual and stock savings institutions to decline consistently over the years.

Question

Quizplus · Accepted Answer

Mutual savings institutions are actually less susceptible to unfriendly takeovers because they are owned by their depositors or members, who typically have no interest in selling the institution to outsiders.

Which of the Following Statements Is Incorrect