Asked by Ann Mary Martin on Jul 06, 2024
Verified
A leveraged buyout (LBO)occurs when a group within a corporation buys all the outstanding corporate stock held by the public.
Leveraged Buyout (LBO)
A takeover-resistance strategy in which a group within the target corporation buys all the corporate stock held by the public, thereby turning the company into a privately held corporation.
Outstanding Corporate Stock
Shares of a corporation that have been issued and are currently owned by shareholders.
- Acquire an understanding of shareholder privileges, such as the transferability of stocks and associated liabilities.
Verified Answer
CM
Clint MeekinsJul 11, 2024
Final Answer :
True
Explanation :
A leveraged buyout (LBO)occurs when a group within a corporation (usually management)buys all the outstanding corporate stock held by the public.Thus,the group gains control over corporate operations by going private,or becoming a privately held corporation.
Learning Objectives
- Acquire an understanding of shareholder privileges, such as the transferability of stocks and associated liabilities.