When a firm is taken private,its stock is:
A)converted into bonds.
B)converted into cash.
C)no longer sold to investors on the open market.
D)pledged as collateral to its bondholders.

Question

Quizplus · Accepted Answer

When a firm is taken private, it means that its shares are no longer publicly traded, and are thus no longer sold to investors on the open market. The other options do not accurately represent what happens to the stock when a firm goes private.

When a Firm Is Taken Private,its Stock Is