The two-step buyout is a recent merger ploy that has which of the following characteristics?
A) It is negotiated in a social, rather than a business setting.
B) The acquiring firm offers to pay a very high price for the target company's stock, and a short time later announces another price that may be higher or lower.
C) The acquiring firm offers to pay a very high price for the target company's stock for a limited time only, after which it will pay a lower price.
D) It forces stockholders to sell out.

Question

Quizplus · Accepted Answer

The two-step buyout involves the acquiring firm offering to pay a very high price for the target company's stock for a limited time only, after which it will pay a lower price. This is different from option A, as it is negotiated in a business setting, and options B and D are not entirely accurate descriptions of the two-step buyout.

The Two-Step Buyout Is a Recent Merger Ploy That Has