CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

Which take-over defense mechanism has the effect of causing dilution to all existing acquiring company's shareholders?
A. Flip-in pill.
B. Flip-over pill.
C. Poison put.
Explanation: The target's shareholders have the right to buy the acquirer's shares at a discount.

User Contributed Comments 2

User Comment
ramdabom What is a Flip-in Pull? Flip-over pill?
bodduna Flip-in = Target company share holders can buy target company shares at discount.
Flip-over = Target company shareholders can buy acquiring company shares at discount.
Both are part of Poison Pill strategy.
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