Corporate Finance is Scary

From yesterday's post, we know corporate finance has shark repellent, porcupine provisions, poison pills, and greenmail.  Could it get any worse?  Now, you need to be on the lookout for golden parachutes and macaroni defenses.


I sure hope the golden parachutes don't fall out of the sky.  That would hurt. (That's what the shareholder said!)  


What the heck is greenmail?  If you thought anthrax in the mail was scary, watch out for moldy mail!  #freepenicillin


Now I want pasta! I initially suspected a macaroni defense was named for a pasta company's creative anti-takeover measure. The real reason: a macaroni defense triggers a jump in the redemption price of bonds in the event of a takeover--the prices expand like macaroni in a pot.

Toxic Takeovers

Thinking of a tender offer?  Watch out for poison pills and keep this number handy.

Don't forget to be wary of shark repellent, porcupine provisions, and greenmail.

April Apologies

My apologies for not having updated the site lately.  The past few weeks have been excessively busy for me.  I will continue to update the site, though at lower frequency.  I do have a lot of great ideas in the pipeline, so please stay tuned.

Stand Up Economist: Yoram Bauman

I had the pleasure of seeing Yoram Bauman perform at Emory University last week.  If you've not seen his site, check it out: http://www.standupeconomist.com/.

Here is a direct link to a funny video: http://www.standupeconomist.com/videos-public/.

I picked up a copy of his Cartoon Introduction to Microeconomics, and I must say, it's quite entertaining.

When OLS Fails

When All Else Fails...