In a tender offer, which of the following is true?
A) Both acquiring and target firms are required to disclose their intentions to the SEC
B) The target's management cannot advise its shareholders how to respond to a tender offer until has disclosed certain information to the SEC
C) Information must be disclosed only to the SEC and not to the exchanges on which the target's shares are traded
D) A and B
E) A, B, and C

Question

Quizplus · Accepted Answer

Option A is true as the acquiring and target firms are required to disclose their intentions to the SEC. 
Option B is also correct as the target's management cannot advise its shareholders how to respond to a tender offer until certain information has been disclosed to the SEC. 
Option C is false as information must be disclosed both to the SEC and the exchanges on which the target's shares are traded. Therefore, options A and B are correct, and option C is incorrect. The correct answer is D.

In a Tender Offer, Which of the Following Is True