A leveraged buyout is an attempt by top management to gain control of a company by issuing a large amount of new stock.

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A leveraged buyout (LBO) is actually a type of acquisition where a group of investors, usually led by the current management team, borrows a significant amount of money to buy a company's outstanding shares, thereby gaining control of the company. This is not achieved by issuing new stock.

A Leveraged Buyout Is an Attempt by Top Management to Gain