The payments made by a firm to repurchase shares of its outstanding stock from an individual investor in an attempt to eliminate a potential unfriendly takeover attempt are referred to as:

Question

Quizplus · Accepted Answer

Greenmail refers to the strategy where a company pays a premium to buy back its own shares from a potential acquirer (usually an individual investor or another company) to prevent a hostile takeover. This is done at a premium price, and the shares are usually bought back to eliminate the threat posed by the acquirer.

The Payments Made by a Firm to Repurchase Shares of Its