A flip-over is one of five types of poison pills in which current shareholders of a targeted firm will have the option to purchase discounted stock after the potential takeover. Poison pill is a term referring to any strategy generally in Business or Politics, to increase the likelihood of negative results over positive ones A mutual shareholder or stockholder is an Individual or company (including a Corporation) that legally owns one or more shares of Generally a company is a form of Business organization. The precise definition varies Software for Fixed assets management and Stock control developed in 2004. In business a takeover is the purchase of one company (the target) by another (the acquirer, or bidder) Introduced in late 1984 and adopted by many firms, the strategy gave a common stock dividend in the form of rights to acquire the firm's common stock or preferred stock under market value. A voting share (also called common stock or ordinary share) is a share of Stock giving the Stockholder the right to vote on matters Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than Voting shares, and its terms are negotiated Following a takeover, the rights would "flip over" and allow the current shareholder to purchase the unfriendly competitor's shares at a discount. If this tool is exercised, the number of shares held by the unfriendly competitors will realize dilution and price devaluation.