An Antitakeover Tactic in Which Existing Shareholders Have the Option

question 56

Multiple Choice

An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called ______.

• A)greenmail
• B)a golden parachute
• C)a poison pill
• D)scorched earth

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Definitions:

Phosgene

A toxic chemical compound used as an industrial reagent and chemical weapon, with the formula COCl2.

Organic Compound

A compound primarily made of carbon atoms bonded to hydrogen, possibly along with oxygen, nitrogen, sulfur, phosphorus, and halogens.

Carbonated Beverages

Drinks that contain dissolved carbon dioxide gas, creating a fizzy or bubbly texture.

pH

A scale used to specify how acidic or basic (alkaline) an aqueous solution is, based on the concentration of hydrogen ions.