Series 79: Chapter 13 Practice Question Answers

Chapter 13 Practice Question Answers

1. 1. Answer: B. A tender offer must remain open for at least 20 business days. Holding a tender offer open for less than 20 business days is considered an unlawful practice. If the price offered or percentage of securities sought changes, the tender offer must remain open for at least 10 business days after notice is given of the change.
2. 2. Answer: D. A, B, and C each describe an unlawful tender offer practice. D describes a practice that, while unlikely to entice shareholders to tender shares, is not unlawful. The tender offer rules do not require tender offers to be fairly priced.
3. 3. Answer: A. Option A is not true because, while Rule 14e-2 requires management to communicate its position on the tender offer to shareholders within 10 days,