what is a "greenmail"?
glossary FAQ: glossary.
L. Cox from Austria
25 February, 2009
A situation in which a large block of stock is held by an unfriendly company. This forces the target company to repurchase the stock at a substantial premium to prevent a takeover.
It is also known as a "bon voyage bonus" or a "goodbye kiss".
Not unlike blackmail, this is a dirty tactic, but it's very effective. Visit FX Universal
what is a "bull spread"?
glossary FAQ: glossary.
R. Welch from Ireland
17 September, 2009
An option strategy in which maximum profit is attained if the underlying security rises in price. Either calls or puts can be used. The lower strike price is purchased and the higher strike price is sold. The options have the same expiration date.
You make a lot of money if the stock rises. You lose it all if it doesn't. It's one of those higher risk maneuvers that can cause a lot of anxiety. Visit NordMarkets
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