What is Greenmail?

Greenmail is a business tactic used by a company, a syndicate or an individual to threaten another company and make money. After buying a good number of shares of a company, they threaten a takeover. A bargain is then struck to force the company to buy back its shares at an exorbitant rate. ‘Greenmail’ has been derived from greenback and blackmail, and is also called a ‘goodbye kiss’.