Tender Offer

AAA

DEFINITION of 'Tender Offer'

An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the market price.

INVESTOPEDIA EXPLAINS 'Tender Offer'

Tender offers may be friendly or unfriendly. Securities and Exchange Commission laws require any corporation or individual acquiring 5% of a company to disclose information to the SEC, the target company and the exchange.

RELATED TERMS
  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
  3. Tender

    To invite bids for a project, or to accept a formal offer such ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding ...
  6. Short Tender

    An investing practice that involves using borrowed stock to respond ...
Related Articles
  1. Fundamental Analysis

    Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  2. Bonds & Fixed Income

    Cashing In On Corporate Restructuring

    Companies use M&As and spinoffs to boost profits - learn how you can do the same.
  3. Investing

    What is the significance of a Schedule 13D?

    A Schedule 13D is significant because it provides investors with useful information about majority ownership in the company. It tells the name, ownership amount and intentions of any investor ...
  4. Investing

    If I reject the tender offer for acquisition of the stock that I own in a company and the company goes ...

    Since the passing of the Sarbanes-Oxley Act, a significant number of public companies have chosen to go private. The reasons why companies make this choice are as varied as the companies themselves, ...
  5. Investing

    When is a takeover bid legally canceled?

    When a firm makes an official bid to take over a target company, a legal offer is created. The firm making the offer becomes an offeror, while the target becomes the offeree. If the target firm ...
  6. Options & Futures

    What does the term "stock-for-stock" mean?

    The term "stock-for-stock" is popularly used in two different contexts, and it regularly makes business news headlines in both."Stock-for-stock" most commonly appears in headlines in reference ...
  7. Brokers

    Is there a downside to having a high liquidity ratio?

    Find out why it might be disadvantageous for a company to have liquidity ratios that are too high, and learn how to find a healthy liquidity range for a firm.
  8. Active Trading Fundamentals

    With an ex-dividend, why does the dividend go to the seller rather than the buyer?

    Find out why ex-dividend payments are sent to the seller of a stock rather than the purchaser and how ex-dividends can create trading opportunities.
  9. Fundamental Analysis

    What is the difference between revenue and profit?

    Understand the difference between revenue and profit, two key concepts in business accounting, including where each can be found on an income statement.
  10. Fundamental Analysis

    What is the difference between revenue and sales?

    Learn to distinguish between a company's revenue and its sales, and see why the distinction is important when analyzing a company's financial performance.

You May Also Like

Hot Definitions
  1. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  2. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  3. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  4. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  5. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
  6. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
Trading Center