Because greenmail involves the repurchase of stock at a price higher than the market price, all shareholders benefit.

Name: Because greenmail involves the repurchase of stock at a price higher than the market price, all shareholders benefit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Greenmail benefits only a select group of shareholders, usually the investors who demanded the repurchase at a premium price. Other shareholders may see a decrease in the value of their shares due to the use of company funds for the repurchase.

Because Greenmail Involves the Repurchase of Stock at a Price