Which of the following takeover defenses is also known as a shareholder rights plan?
A)poison pill
B)blank check
C)supermajority voting
D)greenmail

Question

Quizplus · Accepted Answer

A poison pill is also known as a shareholder rights plan, as it allows existing shareholders to purchase more shares at a discounted price, diluting the ownership of the acquiring company and making the takeover more expensive. Blank check and supermajority voting are not related to poison pills or shareholder rights plans. Greenmail is a tactic used by a target company to buy back shares from a potential acquirer at a premium price, rather than a defense mechanism.

Which of the Following Takeover Defenses Is Also Known as a Shareholder