Which of the following actions precedes a firm from "obtaining a toehold":
A)Purchasing up to 20% of the target firms shares in the open market
B)Purchasing 10% of the target firms shares in the open market
C)Purchasing up to 10% of the target firms shares in the open market
D)Purchasing 20% of the target firms shares in the open market

Question

Quizplus · Accepted Answer

Obtaining a toehold refers to the acquisition of a small percentage of the target firm's shares in the open market to gain a foothold for a potential takeover bid. Typically, a firm would purchase up to 10% of the target firm's shares to obtain a toehold. Therefore, choice C is the best option as it mentions purchasing up to 10% of the target firm's shares in the open market.

Which of the Following Actions Precedes a Firm from "Obtaining