The difference between the current market price of a target firm's shares and the price a potential acquirer offers to pay for those shares is known as an
A) acquisition premium.
B) acquisition discount.
C) acquisition margin.
D) acquisition price.

Question

Quizplus · Accepted Answer

The difference between the market price and the price offered by a potential acquirer is called an acquisition premium. This premium is often paid to convince the target firm's shareholders to sell their shares, and may reflect the premium paid to gain control over the target firm or the strategic value of the acquisition.

The Difference Between the Current Market Price of a Target