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Undue Influence

You have a medium, Madam Vision, that you visit every Tuesday. She gives you spiritual advice and an aura cleansing. You're also the CEO of a Fortune 500 company. One day, you announce to your board that Madam Vision thinks the company should divest its European assets. And who are you to argue with Madam Vision?

An example of undue influence. The term refers to a situation where a person has more sway over another person than is healthy. Usually, it applies to a person close to someone in power, who is able to maneuver them to make potentially bad decisions.

Think: Rasputin. Lady MacBeth. Wormtongue in Lord of the Rings. All examples of undue influence.



Find other enlightening terms in Shmoop Finance Genius Bar(f)