A Takeover Defense Wherein Preferred Stock in the Merged Firm

question 134

Multiple Choice

A takeover defense wherein preferred stock in the merged firm is offered to shareholders at a highly attractive rate of exchange is called

• A) greenmail.
• B) a standstill agreement.
• C) crossing the palm with silver.
• D) a poison pill.

---

Definitions:

Promissory Note

A monetary instrument featuring a formal pledge from one entity to another to pay a specified amount of money, which can be either upon request or on a predetermined future date.

Personal Bankruptcy

A legal process by which individuals unable to meet their debt obligations can obtain relief from some or all of their debts.

NSF

NSF stands for Non-Sufficient Funds, indicating that a check cannot be processed due to insufficient funds in the account.

Note Receivable

A financial asset representing a written promise to receive a specific amount of money at a future date or dates.