Question

All of the following are true of poison pills except for

Group of answer choices

a.They are a new class of security

b.Generally prevent takeover attempts from being successful

c.Enable target shareholders to buy additional shares in the new company if an unwanted shareholder’s ownership exceeds a specific percentage of the target’s stock

d.Delays the completion of a takeover attempt

e.May be removed by the target’s board if an attractive bid is received from a so-called “white knight.”

Answer 1

Poison pills are not a new type of security because they have been adopted by Netflix in 2012 so it's almost A decade older. So option ( A) is incorrect

It is also enabling the target share holder to buy additional share in the the similar company, not the new company because it will be helpful to reduce the stake of players who are attempting to take over the company, so option (C) is incorrect

Rest of the options are true because they are applicable to poison pills.

Correct answer will be option (A )and option( C)