The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

What Is A Corporation Poison Pill ?

Corporation poison pill is a Antitakeover device that gives a prospective acquirer’s shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a very large discount to their fair market value. It gets its name after the cyanide pill that secret government agents are said to be instructed to swallow if capture is imminent.

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