Consider a Case in Which Existing Shareholders Do Not Have

Multiple Choice

Consider a case in which existing shareholders do not have to invest time and effort,but still participate in the gains from a takeover,while the bidder who puts in the time and effort is forced to give up substantial profits.This situation is called:

A) the free rider problem.
B) a toehold.
C) a leveraged buyout.
D) a freezeout merger.
E) a management buyout.