Series 79 practice questioneasyWilliams Act and Tender Offer Regulation
Under the Williams Act, which of the following is a purpose of the Act?
- ATo prevent all hostile takeovers
- BTo require all mergers to be subject to SEC approval
- CTo set minimum merger consideration
- DTo provide full and fair disclosure to investors during tender offers✓ Correct answer
Explanation
Why D — To provide full and fair disclosure to investors during tender offers
The Williams Act’s main purpose is to promote full and fair disclosure to protect investors in tender offers. Other answers incorrectly assign broader or incorrect purposes to the Act.
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