Asked by Jared Bernardi on May 28, 2024

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In a successful takeover, the shareholders of the acquiring firm usually realize substantial gains.

Successful Takeover

is an event where a company or entity successfully acquires control over another company, usually by purchasing a majority of its stock shares.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a financial stake in its success.

Acquiring Firm

A company that takes over or purchases another company, typically to expand its business operations or enter new markets.

  • Understand the effects of mergers and acquisitions on company value and shareholder wealth.
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MG
Mathieu GrindlayJun 01, 2024
Final Answer :
False
Explanation :
In a successful takeover, it is typically the shareholders of the target company who realize substantial gains due to the premium often paid over the market price for their shares, while the shareholders of the acquiring firm may not see immediate gains and could even experience a decrease in share value due to the costs associated with the takeover.