Definition
The practice of buying enough company stock to threaten a takeover, then selling it back to the company at a premium to go away. Corporate extortion wearing a business suit.
Example Usage
The activist investor was attempting greenmail, but the board called their bluff and refused to buy back the shares.
Origin
1980s corporate raider terminology, portmanteau of 'greenback' and 'blackmail'
Fun Fact
Greenmail was so prevalent in the 1980s that Congress eventually passed tax laws to discourage it, though creative financiers still find loopholes.
Source: Corporate finance and mergers & acquisitions terminology
Related Terms
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See “greenmail” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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