3. Do some Internet research to find out what it means for a company to create...

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Economics

3. Do some Internet research to find out what it means for acompany to create a â€œpoison pillâ€? Why might a company do that?Some economists think poison pills should be illegal. What is theirrationale?

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A poison pill is a defense against a hostile takeover attempt by someone to gain control of a company against the current managements wishes Corporatestructured companies are the most susceptible to hostile takeovers as control of these companies is focused on stock ownership You will manage the company if you purchase a majority of voting shares in a company or get a majority of the shareholders to vote according to your instructions This is one reason why businessmen starting companies and selling See Answer

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