Series 79 practice questionhardGoing-Private Transactions
In a going-private transaction involving affiliates, which SEC rule requires enhanced disclosure and procedural fairness, including a summary of the fairness opinion and board approval process?
- ARule 144
- BRegulation M-A
- CRule 13d-3
- DRule 13e-3✓ Correct answer
Explanation
Why D — Rule 13e-3
Rule 13e-3 mandates comprehensive disclosure and fairness analysis for going-private transactions involving affiliates, protecting minority shareholders. Confusing it with general M&A rules is a common error.
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