A shareholder rights plan aimed at discouraging or preventing a hostile takeover is known as

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A shareholder rights plan aimed at discouraging or preventing a hostile takeover is commonly referred to as a "poison pill." This practice is used by companies to ward off hostile takeovers by making the company less attractive to potential acquirers. It is designed to make the takeover more difficult and expensive, ultimately discouraging the hostile bidder from pursuing the acquisition. The use of poison pills is controversial, as some argue that it can unfairly benefit management and hinder the ability of shareholders to sell their shares at a higher price.

A Shareholder Rights Plan Aimed at Discouraging or Preventing a Hostile