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Vocabulary Entry
greenmail
|noun • verb
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N
noun
A financial strategy where a company buys back its own shares at a premium to thwart a hostile takeover.
Example Sentences
"The company's greenmail tactic successfully prevented the takeover."
"In order to avoid the aggressive acquisition, management resorted to greenmail."
"Greenmail can be controversial, as it often prioritizes short-term stock value over long-term strategy."
V
verb
To engage in greenmail by purchasing shares to gain leverage against a hostile bid.
Example Sentences
"He decided to greenmail the firm after they attempted a takeover."
"The investor aimed to greenmail the company's stock to influence its decisions."
"It's risky to greenmail a company, as it can damage long-term relationships with shareholders."