Tender Offer
Definition
A Tender Offer is a public proposal by an individual or entity to purchase a substantial percentage of a company`s shares directly from the shareholders, at a specified price and within a certain timeframe, often aiming for control or significant influence.
Benefits
A tender offer gives liquidity to shareholders and can attract strategic buyers.
Frequently Asked Questions
What is a tender offer? A tender offer is when a buyer wants to buy a big share of a company directly from shareholders.
What is a tender offer on Quizlet? A tender offer on Quizlet is a public proposal by an individual or entity to buy a substantial percentage of a company`s shares directly from shareholders, usually at a premium.
Why is it called a tender offer? It is called a tender offer because shareholders can "tender" or sell their shares for a set price in a given time.
Summary
A tender offer increases liquidity for shareholders and can attract new investors.