- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 29. Introduction to Corporate Governance and Other ESG Considerations
- Subject 6. Factors Affecting Stakeholder Relationships and Corporate Governance
CFA Practice Question
A group seeking to gain control of a company can use the ______ strategy to persuade shareholders to sell their interests directly to the group.
A. outright sell
B. tender offer
C. proxy fight
Explanation: A tender offer is an offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the market price.
User Contributed Comments 1
| User | Comment |
|---|---|
| Michaelali | The word "direct" changed the answer to tender offer.If not that the answer will be proxy contest. |