__________ is a purchase of a dissident shareholder's stock by the issuer at a premium over market,often in exchange for a standstill agreement,whereby the shareholder agrees not to commence a tender offer or proxy contest or to buy additional shares of the issuer for a period of time.
A) Greenmail
B) A freeze out
C) Choice agreement
D) Equitable agreement

Question

Quizplus · Accepted Answer

This describes the practice of greenmail, which is the purchase of a dissident shareholder's stock at a premium to prevent a takeover or proxy contest. The shareholder agrees to sell their shares and not to buy additional shares or commence any takeover attempts in the future.

__________ Is a Purchase of a Dissident Shareholder's Stock by the Issuer