A __________ is a public offer to all the shareholders of a target corporation to buy their shares at a stated price,usually __________ the market price.
A) tender offer; higher than
B) leveraged buyout; higher than
C) tender offer; below
D) leveraged buyout; below

Question

Quizplus · Accepted Answer

A tender offer is a public offer to all shareholders to buy their shares at a stated price, usually higher than the market price, in order to gain control of the target corporation. A leveraged buyout, on the other hand, is typically financed with a combination of equity and borrowed funds, and involves acquiring a controlling interest in a company, often with the goal of taking it private. Therefore, choice A is the correct answer.

A __________ Is a Public Offer to All the Shareholders