Internal and external corporate governance provisions and activities can take many forma, including a poison pill provision. Which of the following best describes this element in a firm's charter?
1. This provision and takover strategy allows the target firm's shareholders to sell a given percentage of their shares to an acquiring firm fora specified percentage premium over the market value of the target firm's common shares.
2. This provision and anti-takeover strategy attempts to increase, rather than reduce, the number of shares that an acquiring firm must purchase to acquire its target.
3. This provision allows a target firms's shareholders to purchase additional shares of the target firm's common stock once a shareholder purchases a certain percentaget of the firm's outstanding shares.