The Primary Purpose of a Flip-In Provision Is To

question 85

Multiple Choice

The primary purpose of a flip-in provision is to:

• A) increase the number of shares outstanding while also increasing the value per share.
• B) dilute a corporate raider's ownership position.
• C) reduce the market value of each share of stock.
• D) give the existing corporate directors the sole right to remove a poison pill.
• E) provide additional compensation to any senior manager who loses his or her job as a result of a corporate takeover.

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Definitions:

Gallfly Families

Groups of insects within the order Hymenoptera, known for inducing gall formation on plants, which serve as their habitats and food sources.

Plant Clones

Plants produced asexually from a single ancestor that possess the exact genetic makeup of the original plant.

Peter And Rosemary Grant

Evolutionary biologists known for their long-term study of Darwin's finches, which demonstrated natural selection in action on the Galápagos Islands.

Evolution By Natural Selection

A fundamental mechanism of evolution, proposed by Charles Darwin, where individuals with traits better suited to their environment tend to survive and reproduce, leading to changes in the population over time.