Series 79 practice questionmediumWilliams Act and Tender Offer Regulation
An activist hedge fund has been quietly purchasing shares of a public company and now holds 4.9% of the outstanding common stock. The fund plans to acquire an additional 0.5% tomorrow. Which of the following best describes the fund's disclosure obligation?
- ANo filing is required until the fund exceeds 10%
- BThe fund must immediately halt all trading and notify the SEC within 24 hours
- CThe fund must file a Schedule TO before making additional purchases
- DThe fund must file Schedule 13D within five business days after crossing 5%✓ Correct answer
Explanation
Why D — The fund must file Schedule 13D within five business days after crossing 5%
An activist investor that exceeds 5% generally files Schedule 13D within five business days under the current Rule 13d-1(a) deadline.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related M&A, Tender Offers & Restructuring questions
- Under the Williams Act, a tender offer must remain open for a minimum of:
- Under Section 13(d) of the Securities Exchange Act, any person who acquires beneficial ownership of more than what…
- A bidder commences a tender offer at $45 per share for all outstanding shares of TargetCo. After 15 business days, the…
- The Williams Act primarily regulates which type of transaction?
- A Schedule TO is filed by which party in a tender offer?
- An acquirer offers mixed consideration of $30 cash and 0.5 shares of acquirer stock per target share. The acquirer's…
- The board of directors of a target company has received an unsolicited tender offer. Within how many business days must…
- Which of the following is a primary reason an acquirer might prefer to use stock rather than cash as merger…