Corporate Finance, Student Value Edition (4th Edition)
Corporate Finance, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134101446
Author: Berk, Jonathan; DeMarzo, Peter
Publisher: PEARSON
bartleby

Videos

Textbook Question
Chapter 28, Problem 1P

What are the two primary mechanisms under which ownership and control of a public corporation can change?

Expert Solution & Answer
Check Mark
Summary Introduction

To describe: The two primary reasons under which ownership and control of a public corporation can change.

Explanation of Solution

The majority shares of a public corporation can be acquired by individuals or by another company. They can subsequently replace the chief executive and other senior managers. This is one way the ownership and control of a public corporation can change.

Another way the ownership and control can change is that the target company can get merged with the acquiring company after acquisition of majority shares of the target company. The target company will cease to exist and the ownership and control will rest now with the acquiring company.

Therefore, the above are two ways in which the ownership and control of a public corporation can change.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What issue does agency theory examine? Why is it important in a public corporation rather than in a private corporation?
If the corporation is considered as de facto, who can question its existence?   Board of Directors Stockholders Solicitor General Corporators
What is an owner of a corporation called? What is the difference between a closed corporation and an open corporation?
Knowledge Booster
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
  • Business/Professional Ethics Directors/Executives...
    Accounting
    ISBN:9781337485913
    Author:BROOKS
    Publisher:Cengage
    Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Entrepreneurial Finance
    Finance
    ISBN:9781337635653
    Author:Leach
    Publisher:Cengage
  • Business Its Legal Ethical & Global Environment
    Accounting
    ISBN:9781305224414
    Author:JENNINGS
    Publisher:Cengage
    CONCEPTS IN FED.TAX., 2020-W/ACCESS
    Accounting
    ISBN:9780357110362
    Author:Murphy
    Publisher:CENGAGE L
    Century 21 Accounting Multicolumn Journal
    Accounting
    ISBN:9781337679503
    Author:Gilbertson
    Publisher:Cengage
  • Business/Professional Ethics Directors/Executives...
    Accounting
    ISBN:9781337485913
    Author:BROOKS
    Publisher:Cengage
    Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Entrepreneurial Finance
    Finance
    ISBN:9781337635653
    Author:Leach
    Publisher:Cengage
    Business Its Legal Ethical & Global Environment
    Accounting
    ISBN:9781305224414
    Author:JENNINGS
    Publisher:Cengage
    CONCEPTS IN FED.TAX., 2020-W/ACCESS
    Accounting
    ISBN:9780357110362
    Author:Murphy
    Publisher:CENGAGE L
    Century 21 Accounting Multicolumn Journal
    Accounting
    ISBN:9781337679503
    Author:Gilbertson
    Publisher:Cengage
    How to Invest in Foreign Stocks (INVESTING FOR BEGINNERS); Author: The Money Tea;https://www.youtube.com/watch?v=Qzj4VozcO9s;License: Standard Youtube License