Question

An anti-takeover measure directly hurting the target firm shareholders’ pockets is

_____

1. A poison pill
2. A golden parachute
3. A greenmail
4. A crown jewel   

Answer 1

Golden parachute is an anti takeover measure that will allow management of the company to be paid higher to protect any kind of takeover attempt so, these compensations which are payable to the executives of the company will be leading to lower profitability of the company and it would be a burden to the shareholders.

So, golden parachute will directly hurt the target form shareholder pocket.

Other statements are not reflecting the correct answer.

Correct answer option ( B) Golden parachute.