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Finance: What is shark repellent? 5 Views
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Description:
Shark repellent is a takeover defense technique used by companies attempting to fend off corporate raiders. Huh. That's way duller than we were expecting.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Banking
- Terms and Concepts / Board of Directors
- Terms and Concepts / Entrepreneur
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
Transcript
- 00:00
what is shark repellant? So yeah for sharknado 11 the [empty movie theatre showing Sharknado]
- 00:08
schmoopy we just gave away the penultimate scene yeah sorry about that [shark getting sprayed with shark repellent]
- 00:13
well in the financial world however shark repellent is a fancy $5 word for
- 00:18
companies trying to fend off corporate raiding sharks like this guy trying to
- 00:23
take them over well companies deploy all kinds of tricks to dilute their shares [businessman attacked by sharks]
Full Transcript
- 00:28
change their business dynamics create friction at the board level and
- 00:32
generally make themselves unappetizing to the Sharks hoping to eat them 4x and [businessman spraying shark repellent over their suit]
- 00:38
sell them for 2x4 years later well you'll hear of specific shark repellents [shareholder rights plan]
- 00:43
like poison pills and partner killer bees ie law firms that specialize in
- 00:48
hostile takeover defenses notion of a company currently trading at 40 bucks
- 00:52
getting a hostile takeover bid for $52 a share and somehow that being perceived
- 00:57
as just awful and terrible and bad is strange to many in the Wall Street [office workers complaining]
- 01:02
investing public if someone is really willing and able to pay a big premium to
- 01:07
buy a given company then why shouldn't it be sold to that new owner well in a
- 01:12
lot of cases the new owner will replace a whole lot of laborers with robots save [McDonald's drive-thru worker replaced with a robot]
- 01:17
a whole lot of money for shareholders and make the company more valuable to
- 01:21
shareholders so that's good for shareholders but not good for the slew
- 01:25
of laborers who are all now out of work and what do they do well the country's [ex-McDoland's worker crying]
- 01:30
taxpayers and typically pay for them in unemployment forms one way or another so [money going towards food stamps, unemployment checks and heathcare]
- 01:34
it's all an ugly political mess but the bottom line companies generally exist
- 01:39
for the financial benefit of the people who own them ie their shareholders and
- 01:44
if the stock market isn't giving the company a reflectively high value then
- 01:49
why shouldn't the company sell to someone who will and why is it the
- 01:53
company's owners job to employ laborers who could be replaced by robots cheaper [robot serving McDonald's drive-thru]
- 01:59
better faster hmm the point is that being that sharks well they aren't
- 02:04
always evil [shark boops guy off screen]
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