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

In a Tender Offer,which of the Following Is True