An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called ______.
A)greenmail
B)a golden parachute
C)a poison pill
D)scorched earth

Question

Quizplus · Accepted Answer

Poison pills are an antitakeover tactic used by a company to give shareholders certain rights in the event of a takeover by another firm. They are also known as shareholder rights plans.

An Antitakeover Tactic in Which Existing Shareholders Have the Option