The Investopedia Express with Caleb Silver cover image

The Price We Really Pay for College, with Ron Lieber

The Investopedia Express with Caleb Silver

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What Is a Poison Pill?

The term poison pill refers to a defense strategy used by a target firm to prevent or discourage a potential hostile takeover. Potential targets use this tactic in order to make them look less attractive to the potential acquirer. A flip over poison pill strategy allows stockholders of the target company to purchase the shares of the acquiring company at a deeply discounted price. We're going to let elon musk take us out this week.

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