In a(n)__________ a stock purchase is financed by debt.
A) cash-out merger
B) freeze-out acquisition
C) leveraged buyout
D) illegal purchase

Question

Quizplus · Accepted Answer

In a leveraged buyout (LBO), the purchase of a company's stock is financed primarily by borrowing money, rather than using the acquirer's own funds. This creates a higher level of risk for the acquirer, but can also result in greater potential returns if the acquired company performs well.

In A(n)__________ a Stock Purchase Is Financed by Debt