Macaroni Defense
Definition of 'Macaroni Defense'An approach taken by a company that does not want to be taken over. The company issues a large number of bonds with the condition they must be redeemed at a high price if the company is taken over. |
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Investopedia explains 'Macaroni Defense'Why is it called Macaroni Defense? Because if a company is in danger, the redemption price of the bonds expands like Macaroni in a pot! |
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