Short Tender

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Dictionary Says

Definition of 'Short Tender'

An investing practice that involves using borrowed stock to respond to an offer made during an attempted acquisition of some or all of a shareholders' shares. The purchase price is usually at a premium to the market price. This practice is restricted by the Securities and Exchange Commission under rule 14e-4 of the Securities Exchange Act.
Investopedia Says

Investopedia explains 'Short Tender'

Officially, an investor must have a net long position that is equal to or greater than the tender offer made, in order to respond to the offer. A net long position refers to the amount of shares an investor is long reduced by any shares the investor is short in the respective security. Although borrowing shares is allowed in short selling, any attempt to borrow shares in response to a tender offer will lead the SEC to take legal action against such participants.
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'Short Tender'

  • Series 7 Study Guide - Municipal Securities - Short Term Munis ...

    http://www.investopedia.com/exam-guide/series-7/municipal-securities/short-term-munis.asp
    ... properly notifying all holders and allowing them the opportunity to tender their
    holdings ... Tax-exempt commercial paper: Short-term, unsecured debt of states and ...

  • Elliott Gets No Love From Packeteer

    http://stocks.investopedia.com/stock-analysis/2008/Elliott_Gets_No_Love_From_Packeteer.aspx
    ... Shareholders are notorious for being short-sighted when it comes to approving buyouts ...
    and creates a liquidity risk for those that do not tender their shares. ...

  • Dollarization Explained

    http://www.investopedia.com/articles/04/082504.asp
    ... By deciding to use the foreign tender, individuals and institutions are protecting
    against ... While it may still be able to provide short-term emergency funds ...

  • A Breakdown Of Stock Buybacks

    http://www.investopedia.com/articles/02/041702.asp
    ... the offer, they will state the number of shares they want to tender along with ... a
    company is merely using buybacks to prop up ratios, provide short-term relief ...

  • 3 Reasons To Own Sauer-Danfoss

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-Sauer-Danfoss-SHS-PH-ITW-CMI-ETN1013.aspx
    ... That's nothing short of awesome. Sauer-Danfoss and Peers. Company. Free Cash Flow
    Yield. ... In December 2009, Danfoss launched a tender offer of $10.10 a share. ...

  • Is there a maximum amount of stock an individual investor or ...

    http://www.investopedia.com/ask/answer/07/how_much_stock.asp
    ... The short answer is that there is no limit to the number of shares one entity ... In
    this situation, the investor may be required to submit a tender offer for the ...

  • Debt Buybacks Continue

    http://stocks.investopedia.com/stock-analysis/2009/Debt-Buybacks-Continue-VIA.B-VIA-BZH-HOV-DDR0901.aspx
    ... Diversified Realty (NYSE:DDR) is in the midst of a cash tender offer for ... debt at
    a discount, but just extending the term by replacing a short-term instrument ...

  • Cashing In On Corporate Restructuring

    http://www.investopedia.com/articles/stocks/06/mainvesting.asp
    ... with stock offerings because these provide the opportunity to short or buy ... Schedule
    14D - This form covers tender offers filed by public acquiring companies. ...

  • CFA Level 1 Study Guide - Corporate Finance - Stock Dividends and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/stock-dividends-repurchases.asp
    ... Competitive Markets; 3.16 Effects on Equilibrium in the Short and Long Run;
    3.17 Characteristics of Monopolies; 3.18 Inefficiencies ...

  • The Auto Industry Gains Traction

    http://stocks.investopedia.com/stock-analysis/2008/The_Auto_Industry_Gains_Traction.aspx
    ... its own statement in which executive chairman Bill Ford supported the tender offer
    and ... The result is a difficult short-term market with some optimism about the ...

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