Upon announcement of a stock merger deal, the target’s stock price typically decreases True False

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Question

Upon announcement of a stock merger deal, the target’s stock price typically decreases True False

Upon announcement of a stock merger deal, the target’s stock price typically decreases

True

False

business finance

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Answer 1

Answer #1

False

After announcement of a stock merger deal, the target's stock price typically decreases as the acquirer pays premium for the acquisition of target's stock.

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Answer 2

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Upon announcement of a stock merger deal, the target’s stock price typically decreases True False

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Upon announcement of a stock merger deal, the target’s stock price typically decreases True False

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Upon announcement of a stock merger deal, the target’s stock price typically decreases True False