Greenmail refers to
A)acquiring shares in a firm, causing the firm to repurchase the shares at a premium to prevent a takeover.
B)financing provided by securities firms to help support an acquisition.
C)investing in the shares of a firm that is anticipated to experience a leveraged buyout (LBO).
D)acquiring a firm and selling off individual divisions of the firm separately.

Question

Quizplus · Accepted Answer

Greenmail refers to the practice of an individual or entity acquiring a significant number of shares in a company with the intention of forcing the company to repurchase those shares at a premium, in order to prevent a hostile takeover. This practice is often seen as a coercive tactic that enables the greenmailer to extract a financial gain at the expense of shareholders and the company itself.

Greenmail Refers to