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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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Search results for 'Macaroni Defense'
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http://www.investopedia.com/articles/01/050901.asp
... Macaroni Defense This is a tactic by which the target company issues a large number
of bonds that come with the guarantee that they will be redeemed at a ...
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http://www.investopedia.com/university/fundamentalanalysis/fundanalysis2.asp
... good governance, in terms of ownership rights, is whether or not a company possesses
large amounts of takeover defenses (such as the Macaroni Defense or the ...
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http://www.investopedia.com/articles/stocks/09/bear-into-bull-market.asp
... of economic conditions. Just keep in mind that dinner might be macaroni
and cheese instead of filet mignon. (These companies may ...
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