The payments made by a firm to repurchase shares of its outstanding equity from an individual investor in an attempt to eliminate a potential unfriendly takeover attempt are referred to as:

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Greenmail refers to the payments made by a company to buy back its shares from a potential hostile acquirer at a premium price, thereby eliminating the threat of a takeover. The term "greenmail" is derived from the words "green" (representing money) and "blackmail" (which refers to a threat).

The Payments Made by a Firm to Repurchase Shares of Its