Academic MBA Question:
Question: Mr. Rajeev Mehta was the Chairman of Topaz Bank. The bank was earning fairly well and shareholders were receiving regular dividends. The market price of their shares was performing well. The bank was about to announce taking over the ‘AME Bank.’ Mr. Rajeev Mehta expected that the market share of their bank would rise once the takeover is announced in the public. Being a part of the bank, Rajeev was not allowed to buy shares of Topaz bank. He called one of his wealthy friend Rashid and asked him to invest Rs.5 crores in shares of his bank promising him the capital gains.
Academic Assignment Answer: