A group of individual investors is in the process of acquiring all of the publicly-traded shares of OM Outfitters.Once the shares are acquired,they will no longer be publicly traded.Which of the following terms applies to this process?
A)tender offer
B)proxy contest
C)going-private transaction
D)leveraged buyout
E)consolidation

Question

Quizplus · Accepted Answer

A going-private transaction is a process in which a group of individuals or a private equity firm acquires all of the publicly-traded shares of a company, thereby taking the company private. This process typically involves a higher degree of control and freedom for the investors, as they are no longer subject to the regulations and reporting requirements of public markets.

A Group of Individual Investors Is in the Process of Acquiring