When management repurchases the shares of a large investor that may be threatening them at a premium price, it is called

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This situation is commonly referred to as greenmail. Greenmail occurs when a company repurchases its own shares from an investor who may be attempting to take over the company or exert significant control. By paying a premium price for the shares, the company is able to remove the threat and protect its management team. Greenmail is the practice of a company repurchasing its own shares at an inflated price from a large investor who may be threatening a takeover or other form of unwanted influence. This is done to prevent the investor from continuing to pursue those actions and is often seen as a way to protect the interests of the company's management. A golden parachute is a lucrative financial package that is given to top executives in the event of a merger or acquisition, and a management buy-out is when a company's management team purchases the company from its current owners. Blackmail involves making threats or demands in exchange for not revealing embarrassing or damaging information about someone.

When Management Repurchases the Shares of a Large Investor That