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.