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In the context of corporate law can someone explain the concept of a poison pill? ?

I am in business associations right now and having a hard time with understanding the function of a poison pill. All I know is that it is a defensive mechanism to a takeover. Any further explanation would be great, Thanks in advance. Mike K: thank you, that was very helpful, I will give you best answer when it allows me to.

Asked By: daaaave - 11/20/2008
Best Answer - Chosen by Asker
Poison pill is a term referring to any strategy, generally in business or politics, to increase the likelihood of negative results over positive ones for a party that attempts any kind of takeover. It derives from its original meaning of a literal poison pill carried by various spies throughout history, taken when... More
Answered By: Michael K - 11/20/2008
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