Lobster Trap

Description of Lobster Trap. Explanation.

Definition Lobster Trap. Description.

A Lobster Trap is an anti-takeover strategy whereby the target firm passes a provision preventing anyone with more than 10% ownership of convertible securities (convertible bond, convertible preferred stock, or warrant) from transferring these securities to voting stock.

Compare with: Anti Hostile Takeover Mechanisms  |  Voting Rights Plan  |  Staggered Board of Directors

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End of description Lobster Trap. An explanation.