A poison pill is generally used in hostile takeovers to ensure that outsiders can't get any shares of stock.

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A poison pill is a defense strategy used by a target company to deter or discourage a potential hostile takeover by making its stock less attractive to the acquirer, often by allowing existing shareholders (except the acquirer) to buy more shares at a discount, diluting the value of shares held by the acquirer.

A Poison Pill Is Generally Used in Hostile Takeovers to Ensure