Williams Act

Definition of 'Williams Act'


A federal act passed in 1968 that defines the rules of acquisitions and tender offers. The Williams Act requires the bidders to include all details of a tender offer in their filing to the SEC and the target company. Their filing must include the offer terms, cash source and the bidder's plans for the company after the takeover.

Investopedia explains 'Williams Act'


The Williams Act also includes time constraints that stipulate the minimum period of time an offer may be open and the number of days after the offering in which shareholders have the right to change their minds. In the 1960s, a large number of takeovers occurred unannounced. This situation created difficulties for managers and stockholders who were forced to make crucial decisions with very little preparation. The Williams Act was created to protect investors from these occurrences.



comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center