CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

"Shark repellents" include:

I. Restricted voting rights to new shareholders.
II. Requiring super-majority approvals for certain resolutions to be approved by the shareholders.
III. Staggered change of the board of directors.
IV. Poison pills.
Correct Answer: I, II and III

Shark-repellent: Amendments to the corporate charter, which will make the firm very unattractive or difficult as a target. It also includes fair-price amendments.

IV is a rights-based defense mechanism.

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