PRUDENCE Definition

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PRUDENCE is having foresight and caution along with discretion, and to not act recklessly.

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SWEEPING ACCOUNTS is when an entity zeros out a monetary asset account (takes the money) that does not meet an established mandatory monetary hurdle at which they will make a payment to the holder of that account, e.g., if a salesman does not make a certain amount of sales required over a time period, his company will not pay him commission on the sales that were made during that period and sweep his account balance to zero at the end of the time period.

POISON PILL is where the targeted company defends itself by making its stock less attractive to an acquirer.

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