### Question
How does GREENMAIL define greenmail?


### Answer
Under *26 U.S.C. § 5881*, **greenmail** is defined as:

> any consideration transferred by a corporation (or any person acting in concert with such corporation) to directly or indirectly acquire stock of such corporation from any shareholder if—



(1) such shareholder held such stock (as determined under section 1223) for less than 2 years before entering into the agreement to make the transfer,



(2) at some time during the 2-year period ending on the date of such acquisition—



(A) such shareholder,



(B) any person acting in concert with such shareholder, or



(C) any person who is related to such shareholder or person described in subparagraph (B),


  

made or threatened to make a public tender offer for stock of such corporation, and



(3) such acquisition is pursuant to an offer which was not made on the same terms to all shareholders

#### Citation:
  - *26 U.S.C. § 5881*
  - Heading: **Subtitle E-Alcohol, Tobacco, and Certain Other Excise Taxes > CHAPTER 54-GREENMAIL**

