When the management and/or a small group of investors takeover a firm and the shares of the firm are delisted and no longer publicly available, this action is known as:
A) a consolidation.
B) a vertical acquisition.
C) a proxy contest.
D) a going-private transaction.

Question

Quizplus · Accepted Answer

A going-private transaction occurs when a company's management and/or a small group of investors buy out the public shareholders, delist the company from stock exchanges, and convert it into a privately held entity. This process removes the company's shares from public trading.

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