Question

2. Speaking at the annual shareholders' meeting of 2020. Mr. Buffett said "the world has changed" because of the coronavirus. He then said he had been wrong to invest in the airline industry. The conglomerate had an 11% stake in Delta Air Lines, 10% of American Airlines, 10% of Southwest Airlines, and 9% of United Airlines, according to its annual report and company filings, Warren Buffett says his company Berkshire Hathaway has sold all of its shares in the four largest US airlines. Which one of the following provides the most efficient means for Mr. Warren Buffett to sell his shares? A. Secondary market transaction B. Proxy statement C. Private placement transaction D. Stakeholder purchase E Issuer-sponsored Dutch auction

Answer 1

IN THIS CASE THE M0ODEL WHICH MOST SUETABLE FOR THE SITUATION IS PRIVATE PLACEMENT TRANSACTION

WHICH MEANS " IT IS WHEN A COMPANY EQUITY IS BOUGHT AND SOLD TO A LIMITED GROUP OF INVESTORS.THAT EQUITY CAN BE SOLD AS STOCKS ,BONDS OR OTHER SECURITIES." AND OTHER MODELS ARE MEANS AS FOLLOWS

THE SECONDARY MARKET TRANSACTION ALSO CALLED THE AFTER MARKET AND FOLLOW ON PUBLIC OFFERING IS THE FINANCIAL MARKET IN WHICH PREVIOUSLY ISSUED FINANCIAL INSTRUMENTS SUCH AS STOCKS. OPTIONS,AND FUTURES ARE BOUGHT AND SOLD

.PROXY STATENENT MEANS ISSUEING OF STATEMENT FOR THE MEETINGS AND STAKE HOLDER PURCHASE STAND FOR ISSUEING SHARES TO EMPOLYEES OND SUPPORTERS OF ORGANISATION AND ISSUER SPONSERD DUTCH AUCTION IS A METHOD OF PUBLIC OFFERING IN WHICH THE PRICE OF THE SHARES ARE LOWERED UNTIL THERE ARE ENOUGH BIDS TO SELL ALL SHARES.