The Defense Tactic That Involves Purchasing Shares Held by the Would-Be

question 25

Multiple Choice

The defense tactic that involves purchasing shares held by the would-be acquiring company at a price substantially in excess of their fair value is called:

• A) poison pill.
• B) pac-man defense.
• C) greenmail.
• D) white knight.

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Definitions:

Unrealized Holding

Unrealized holding refers to profits or losses on investments or assets that have increased or decreased in value but have not yet been sold or realized.

Bond Liability

Bond liability is the amount owed by a bond issuer to bondholders, including both the principal amount borrowed and any accrued interest, until the bond matures.

Futures Contract

A standardized legal agreement to buy or sell a specific commodity or financial instrument at a predetermined price at a specified time in the future.

Market Value

The current price at which an asset or service can be bought or sold.