Suppose a group of outsiders solicits shareholders' authority to vote shares to replace existing management. This is called
A)a tender offer.
B)a proxy contest.
C)a vote of confidence.
D)greenmail.

Question

Quizplus · Accepted Answer

The situation described is a proxy contest, where outsiders seek shareholders' votes to remove current management and replace them with their own candidates. A tender offer refers to an offer by an acquirer to purchase shares from existing shareholders at a premium price. A vote of confidence is a vote to express support for current management. Greenmail refers to a situation where a company buys back its own shares at a premium price to avoid a hostile takeover.

Suppose a Group of Outsiders Solicits Shareholders' Authority to Vote