Purchase Right

From Open Risk Manual

Definition

Purchase Right. Anti-takeover device that gives a prospective acquiree’s shareholders the right to buy usually shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value.

The underlying is usually shares but this not necessarily the case. Also known as "Poison Pill".

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.