A golden parachute is an offer by a target corporation to the bidder to acquire a portion of the shares,which are already held by the bidder,at a price greater than when it was originally sold.

Question

Quizplus · Accepted Answer

A golden parachute is actually an agreement in which key executives and employees of a company receive significant benefits if the company is taken over or merged with another company. It is not an offer made to the bidder.

A Golden Parachute Is an Offer by a Target Corporation