Lobster trap (finance)

Lobster trap (finance)

A lobster trap is an anti-takeover strategy used by target firms. In a lobster trap, the target firm issues a charter that prevents individuals with more than 10% ownership of convertible securities (includes convertible bonds, convertible preferred stock, and warrants) from transferring these securities to voting stock.

ee also

* Mergers and acquisitions
* Takeover
* Industrial organization


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