Poison Pill Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Poison Pill, written in plain English, along with examples of how it is used.

What is Poison Pill?

It is an anti-takeover stretegy by the company which is in target for the hostile takeover. It is a fullly planned tactics whereby the company or firm offers its shareholder, the stocks at much lower price(below market price) that it becomes very expensive and unattractive for the shareholder to takeover the company.