CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

As a defensive maneuver, a firm issues deep-discount bonds that are redeemable at par in the event of an unfriendly takeover. These bonds are an example of:
A. Greenmail.
B. A poison put.
C. A "scorched earth" policy.
Explanation: Poison put: Bondholders get rights to sell the bonds back to the company when there is a change of control as a result of a takeover.

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