Series 79 practice questioneasyHart-Scott-Rodino
What is the practical effect of the HSR waiting period after a required filing is made?
- AThe parties generally must wait for the statutory period to expire or terminate before closing✓ Correct answer
- BThe merger becomes effective immediately upon filing
- CThe target must stop all ordinary-course operations
- DThe issuer can no longer issue periodic reports
Explanation
Why A — The parties generally must wait for the statutory period to expire or terminate before closing
The parties generally must wait for the statutory period to expire or terminate before closing The waiting period gives antitrust regulators time to review the transaction before consummation. Closing before the waiting period expires, absent early termination or an exemption, is not permitted.
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