Definition: A poison pill is a way to make a company less attractive to a hostile buyer. This prevents hostile takeovers and changes in management.
Advice: Common types of poison pills include the following:
1.) The right for existing shareholders to buy shares at a discount (dilutes the acquirer) 2.) Granting more voting rights to existing shareholders. 3.) Companies may issue lots of debt or preferred stock to make themselves less attractive.
Voting Stock - A Voting Stock is a stock that comes with voting rights to the holder of this stock. With this voting right, a shareholder can have influence on important matters that involves the company. He or she can also vote for members of the...