GREENMAIL
greenmail. 1. The act or practice of buying enough stock in a company to threaten a hostile
takeover and then selling the stock back to the corporation at an inflated price. 2. The money paid
for stock in the corporation’s buyback. Cf. BLACKMAIL(1); FEEMAIL; GRAYMAIL. 3. A
shareholder’s act of filing or threatening to file a derivative action and then seeking a
disproportionate settlement. [Blacks Law 8th]