- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
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 |
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Michaelali | The word "direct" changed the answer to tender offer.If not that the answer will be proxy contest. |