When the management and/or a small group of investors take over a firm and the shares of the firm are delisted and no longer publicly available, this action is known as a:
A)consolidation.
B)vertical acquisition.
C)proxy contest.
D)going-private transaction.
E)None of the above.

Question

Quizplus · Accepted Answer

This action is known as a going-private transaction, where the management or a small group of investors take over the firm and delist its shares, making them no longer publicly available. This allows the private owners to have more control over the company's operations and financial decisions. Consolidation involves combining two or more companies into a larger entity, while vertical acquisition refers to the acquisition of a company in the same industry but at a different stage of the supply chain. Proxy contest involves a battle for control of a company's board of directors by different groups of shareholders.

When the Management And/or a Small Group of Investors Take