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Which of the following is the best definition of a stock exchange bid? Question 7 options:...

Which of the following is the best definition of a stock exchange bid?

Question 7 options:

A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.

A public offer by one firm to directly buy the shares from another firm.

Corporate takeover bid communicated to shareholders by direct mail.

Corporate takeover bid communicated to the shareholders through a stock exchange.

The complete absorption of one company by another, where the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity.

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Answer #1

Option D is correct.

Corporate takeover bid communicated to the shareholders through a stock exchange.

Securities and Exchange Commission (SEC) laws require the bidder to submit a bid to the stock exchange, to acquire the shares from the shareholders.

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