Series 79 practice questioneasyGoing-Private Transactions
Rule 13e-3 is triggered when which of the following occurs?
- AA public company issues new shares to the public
- BA company merges with an unrelated public company
- CA going-private transaction involving an affiliate is proposed✓ Correct answer
- DA publicly traded company repurchases less than 5% of its shares in open market transactions
Explanation
Why C — A going-private transaction involving an affiliate is proposed
Rule 13e-3 applies when affiliates are involved in taking a public company private, requiring enhanced disclosures to protect investors. Other actions, like issuing new shares or small buybacks, do not trigger 13e-3 obligations.
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