Which of the Following Terms Refers to Buying Out a Hostile

question 18

Multiple Choice

Which of the following terms refers to buying out a hostile shareholder at a price far above the current price of the target company's stock in exchange for the hostile shareholder's agreement not to buy more shares for a period of time?

• A) golden parachute
• B) poison pill
• C) porcupine provision
• D) greenmail

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Definitions:

Financial Forecasts

Projections of a company's future income, expenses, and capital requirements, based on assumptions about economic conditions, market trends, and business operations.

Affiliate

A business enterprise located in one state that is directly or indirectly owned and controlled by a company located in another state. Also called foreign subsidiary.

Issuer

An issuer is an entity that releases securities into the market for investors to purchase, often to raise capital for the entity's operations or projects.

Control

refers to having the power to direct the management and policies of a company, often through the ownership of a majority of shares.