flip-in

noun

A poison pill giving current shareholders of the targeted company the right to purchase additional stock at a discount before a potential takeover, so that the potential acquirer risks discriminatory dilution in the target company. The threshold level therefore effectively sets a ceiling on the amount of stock that any shareholder can accumulate before launching a proxy contest.

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Meanings

nounflip-in (plural flip-ins)

plural flip-ins

  1. businessA poison pill giving current shareholders of the targeted company the right to purchase additional stock at a discount before a potential takeover, so that the potential acquirer risks discriminatory dilution in the target company. The threshold level therefore effectively sets a ceiling on the amount of stock that any shareholder can accumulate before launching a proxy contest.

    There has been no definitive or pervasive ruling as yet on flip-ins, but courts in specific cases have limited their applications.

    1994, Milton L. Rock, Robert H. Rock, Martin J. Sikora, The Mergers and Acquisitions Handbook
Cite this entry
APA

flip-in. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/flip-in

MLA

“flip-in.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/flip-in. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “flip-in,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/flip-in.

Source: flip-in on Wiktionary, CC BY-SA 4.0.