greenmail

[ green-meyl ]

noun

, Stock Exchange.

1. the practice of buying a large block of a company's stock in order to force a rise in stock prices or an offer by the company to repurchase that block of stock at an inflated price to thwart a possible takeover bid.

greenmail

/ ˈɡriːnˌmeɪl /

noun

1. (esp in the US) the practice of a company buying sufficient shares in another company to threaten takeover and making a quick profit as a result of the threatened company buying back its shares at a higher price

Other Words From

• greenmailer noun

Word History and Origins

Origin of greenmail¹

green (in sense “money”) + (black)mail

Word History and Origins

Origin of greenmail¹

C20: a blend of green (sense 8) or greenback (sense 2) + blackmail