Greenmail Definition

grēnmāl
noun
The buying of a large amount of a company's stock in anticipation that the management, fearing that the buyer will gain control, will buy it back at a premium over the market price.
Webster's New World
The act of purchasing shares in a publicly traded company that could be used to support a hostile takeover, and then selling them back to the company at a profit.
Webster's New World Law

Other Word Forms of Greenmail

Noun

Singular:
greenmail
Plural:
greenmails

Origin of Greenmail

  • Blend of greenback and blackmail

    From Wiktionary

  • green money (black)mail

    From American Heritage Dictionary of the English Language, 5th Edition

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greenmail