CURRENT AFFAIRS

Detailed explanation-1: -Q. ‘Poison Bill’, which was seen in the news, is associated with which field? Notes: In the field of finance related to merger and acquisition, limited-duration shareholder rights plan is also known as a “Poison pill”.

Detailed explanation-2: -"Poison pill” is a colloquial term for a defense strategy used by the directors of a public company to prevent activist investors, competitors, or other would-be acquirers from taking control of the company by buying up large amounts of its stock.

Detailed explanation-3: -Poison pill amendment or wrecking amendment, an addition to a legislative bill that renders it ineffective. Shareholder rights plan, also called a poison pill, a subclass of anti-takeover provisions that dilutes the attacker’s power.

Detailed explanation-4: -A poison pill is a defensive tactic that corporations implement to prevent or discourage a hostile takeover. When triggered, a poison pill typically allows all shareholders, except for the hostile bidder, to purchase additional shares in a company at a discounted rate. This dilutes the hostile bidder’s ownership.

Detailed explanation-5: -A poison pill is a maneuver that typically makes a company less palatable to a potential acquirer by making it more expensive for the acquirer to buy shares of the target company above a certain threshold.