A poison pill protects the rights of shareholders.

Question

Quizplus · Accepted Answer

A poison pill is a defensive tactic used by a company to prevent a hostile takeover. It typically results in dilution of the shares, making the target company less attractive to the acquirer. While it may protect the interests of the company's management and board, it can hurt the interests of shareholders by reducing the value of their investment. Therefore, a poison pill does not necessarily protect the rights of shareholders.

A Poison Pill Protects the Rights of Shareholders