Difference between revisions of "Financial poison pill"
(Created page with "Financial poison pill (or, simply, poison pill or poison pills) is shareholder rights provision that allows existing shareholders in a company to purchase addition...") |
m (Gary moved page Poison pills to Financial poison pill) |
(No difference)
| |
Revision as of 20:39, 28 October 2019
Financial poison pill (or, simply, poison pill or poison pills) is shareholder rights provision that allows existing shareholders in a company to purchase additional shares of stock at a lower-than-market value if a potential acquirer purchases a controlling stake in the company.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Poison pills. Shareholder rights provisions that allow existing shareholders in a company to purchase additional shares of stock at a lower-than-market value if a potential acquirer purchases a controlling stake in the company.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
