Search results
Oct 1, 2019 · Finally, one non-financial method of a poison pill is to stagger the election of the board of a company, causing the acquiring company to face a hostile board for a prolonged period of time. In some cases, this delay in gaining control of the board (and therefore the votes necesarry to approve certain key actions) is a sufficient deterrent for a takeover attempt.
Sep 29, 2020 · How Does a Blank Check Preferred Stock Work? The most common reason a company will issue blank check preferred stock is to create a ' poison pill ' whereby the rights associated with the stock make a takeover unattractive.
Mar 16, 2021 · Once the tender offer is made, ABC can accept the terms of the offer, negotiate a different price, use a ' poison pill ' or other defense to avert the deal, or find somebody else to sell to who will pay as much or more as XYZ is offering.
Oct 1, 2019 · How Does an Anti-Takeover Measure Work? For a myriad of reasons, a company may not want to be taken over. Thus, if management believes a takeover bid is likely to occur, there are a number of strategies or obstacles it may use to avoid being bought.
Sep 29, 2020 · They are also controversial because many represent a massive payout, irrespective of company and executive performance. As a result, golden parachutes are sometimes perceived as 'poison pills.' Transactions, if they involve the dismissal of top executives, can be perceived as too expensive even if they will benefit the company overall.
1 day ago · InvestingAnswers' glossary of financial definitions and business terms that begin with the letter "P"
Oct 7, 2020 · What is a Corporate Charter? Also called 'articles of incorporation' or a 'certificate of incorporation,' a corporate charter is a legal document that sets forth a corporation 's basic information, such as its location, profit/nonprofit status, board composition and ownership structure.
Sep 29, 2020 · How Do Agency Costs Work? In a publicly-held company, agency costs occur when company management (i.e. “agent”) places their own personal financial interests above those of the shareholder (ie. 'principal').
Sep 16, 2020 · A make-whole call provision is a call provision attached to a bond, whereby the borrower must make a payment to the lender in an amount equal to the net…
Aug 25, 2020 · For example, a company that manufactures a pill that cures cancer has a lot of pricing power: the demand for the pill will probably change very little if the price goes up. A manufacturer of granola has much less pricing power.
