menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Mergers Acquisitions Study Set 1
  4. Exam
    Exam 10: Analysis and Valuation
  5. Question
    Why Is It Likely That Shares Trade at a Discount
Solved

Why Is It Likely That Shares Trade at a Discount

Question 55

Question 55

Essay

Why is it likely that shares trade at a discount from their value when issued if investors attempted to sell such shares within one year following closing of the reverse merger?

Correct Answer:

verifed

Verified

Following a reverse merger, the operatin...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q50: Empirical evidence suggests that discounts have declined

Q51: Taking Advantage of a “Cupcake Bubble”<br>_<br>Key Points<br>Financing

Q52: Despite the lack of public exchanges for

Q53: Private firms must file quarterly earnings reports

Q54: Shell Game: Going Public through Reverse Mergers<br>_<br>Key

Q56: Financial information for both public and private

Q57: Why might shell corporations have value?

Q58: In many countries, family owned firms have

Q59: A sudden improvement in operating profits in

Q60: The discount rate may be estimated using

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines