Question

Under the Securities Act of 1934 a tender offer:

a. must be disclosed if the offertory's acquistion would give him/her 5% OF THE TARGET'S STOCK

b. must be disclosed only to the shareholders of the target corporation

c. disclosure is strictly informational to ensure that investors know what is affecting the purchase price of their stock

d. none of the above is correct

Answer 1

Amswer :Option A (must be disclosed if the offertory's acquistion would give him/her 5% OF THE TARGET'S STOCk)

Filing and public disclosures with the SEC are also required of anyone who acquires more than 5 percent of the outstanding shares of any class of a corporation subject to federal registration requirements. Copies of these disclosure statements must also be sent to each national securities exchange where the securities are traded, making the information available to shareholders and investors.