A popular defence mechanism against hostile takeover bids is the creation of securities called ___________
A)Shark Repellents
B)Poison Pills
C)Packman defence
D)The Crown Jewel

Question

Quizplus · Accepted Answer

Poison Pills are a type of defense mechanism used by companies to fend off hostile takeover attempts. This strategy makes the company's stock less attractive to the acquirer by allowing existing shareholders (except the acquirer) to buy more shares at a discount, diluting the acquirer's stake.

A Popular Defence Mechanism Against Hostile Takeover Bids Is the Creation