Bronx New York Stockholders' Rights Plan of Data scope Corp is a financial strategy implemented by the corporation to protect the rights and interests of its stockholders. This plan, also known as a "poison pill," aims to prevent hostile takeovers or attempts to gain control of the company without the board of directors' approval. The Bronx New York Stockholders' Rights Plan is a defensive measure that allows existing stockholders to maintain their ownership and control of Data scope Corp. in case of an unsolicited acquisition proposal. It grants stockholders certain rights, commonly called "rights certificates," which are distributed to all current stockholders. These certificates provide them with the privilege to purchase additional shares of Data scope Corp. at a discounted price. The purpose of this plan is to make it financially undesirable for an acquiring party to proceed with an unsolicited bid, as the increased number of shares held by existing stockholders dilutes the acquiring party's ownership stake, thereby making the takeover more expensive. The rights certificates are only triggered in specific situations, such as if an individual or a group acquires a certain percentage of Data scope Corp.'s shares without board approval. There are different types of Stockholders' Rights Plans that may be implemented by Data scope Corp., each tailored to the company's specific needs and circumstances. These may include: 1. Standalone Rights Plan: This common type of plan is implemented as a precautionary measure to deter potential takeovers. It acts as a protection mechanism, ensuring that stockholders have the ability to maintain control over the company. 2. Flip-In Rights Plan: In this variation of the plan, the rights certificates can be exercised at a reduced price by stockholders if a hostile takeover attempt occurs. It provides stockholders with a financial advantage if they choose to purchase additional shares, thus discouraging the acquiring party from proceeding. 3. Flip-Over Rights Plan: Unlike the flip-in plan, the flip-over rights plan allows stockholders to buy shares of the acquiring company at a discounted price after an acquisition takes place. This incentivizes stockholders to remain invested in Data scope Corp. even if a takeover occurs, which can result in a loss of control. Overall, the Bronx New York Stockholders' Rights Plan of Data scope Corp. serves as a safeguard mechanism for stockholders, protecting their interests and deterring unwelcome takeover attempts. It aims to ensure that any change in control of the company is done with the approval and in the best interest of all stockholders.