What Is the Main Difference Between the U

question 40

Multiple Choice

What is the main difference between the U.S.and Canada in terms of the use of poison pills?

• A)In Canada, poison pills are illegal.
• B)In the U.S., poison pills cannot be challenged in court.
• C)In Canada, courts always dismiss the usage of poison pills.
• D)In Canada, poison pills are used to delay the acquisition in case of the existence of another bidder; they cannot be used to frustrate a bid the way they are in the U.S.

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Definitions:

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, often measured by the standard deviation of historical daily price changes.

Coupon Rate

The interest rate on a bond paid by the issuer, expressed as a percentage of the bond's face value.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over the bond's life, with the principal repaid at maturity.