A “shareholder rights plan” is otherwise referred to as: preferred stock, preferred as to dissolution. a special voting privilege for some stock classes. a poison pill meant to thwart buyers. preferred stock, preferred as to dividends.

Poisoned, Inc. has just adopted a shareholder rights plan. It is likely that the markets might choose to: lower its price estimates of shares of Poisoned. raise its price estimates of shares of Poisoned. lower the S&P ratings on bonds of Poisoned. raise the S&P ratings on bonds of Poisoned.

RigaMortis, Inc. has adopted a “dead hand” poison pill. It is most likely the case that: the plan is legal and RigaMortis is located in Pennsylvania. the plan is opposed by members of the current board. the plan is legal and RigaMortis is located in Ohio. the plan is supported by shareholders and the market.

Z Corp. is attempting a takeover of Y Corp. Y Corp. has a poison pill in place. Before Z Corp. goes too far in the acquisition, it will be forced to: trigger the poison pill. sue Y Corp. negotiate with Y Corp's management. redeem the pill.

K Corp. is attempting to acquire P Corp. K has been actively acquiring P’s stock for the last two months and has managed to take quite a large position. However, without realizing it, K has acquired a position so large that it has inadvertently triggered P’s poison pill. The result to K is that: it will be sued by P Corp. for triggering the pill. it must automatically sell its shares at the lowest price it paid. it will have to resell some of its shares until it goes below the pill's trigger level. it will be massively diluted by the pill and cause financial chaos for P.

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