The Primary Purpose of a Flip-In Provision Is To

Multiple Choice

The primary purpose of a flip-in provision is to:

A) increase the number of shares outstanding while also increasing the value per share.
B) dilute a corporate raider's ownership position.
C) reduce the market value of each share of stock.
D) give the existing corporate directors the sole right to remove a poison pill.
E) provide additional compensation to any senior manager who loses his or her job as a result of a corporate takeover.