In Canada,the law requires that when existing shareholders of a target firm are forced to sell their shares,they receive ________ for their shares.
A) a fair market value
B) a discounted value
C) a risk-free stock value
D) the current market value

Question

Quizplus · Accepted Answer

The law in Canada requires that when existing shareholders of a target firm are forced to sell their shares, they must receive fair market value for their shares. This ensures that shareholders are not unfairly disadvantaged by a takeover bid and receive a fair price for their shares. A fair market value is determined by the current price of the shares on the market and other factors that may affect their value. Thus, option A is the correct choice.

In Canada,the Law Requires That When Existing Shareholders of a Target