Series 79 practice questioneasyFairness Opinions
Which of the following statements about a fairness opinion is correct?
- AIt guarantees the board’s approval of the transaction
- BIt addresses whether the consideration received is fair from a financial point of view✓ Correct answer
- CIt opines on the strategic merits of the deal
- DIt certifies that all disclosures are accurate
Explanation
Why B — It addresses whether the consideration received is fair from a financial point of view
A fairness opinion only addresses the financial fairness of the deal consideration to shareholders, not strategic merits or disclosure accuracy. Confusing financial fairness with strategic or legal issues is a common trap.
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