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Short tender |
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Short tenderPractice prohibited by SEC that involves the use of SEC SEC to respond to a SEC offer.Short tender Similar MatchesTender offerTender offerWhen a company decides to list its shares on the Stock Exchange, it can either offer its shares to the public at a price which it stipulates, or it can make an 'offer by tender'.Put simply, it invites the public to bid for the shares, and when all the tenders are in, it sells them to the highest bidders, thus raising the maximum amount of capital. Sometimes, the issue of shares will be subject to a reserve price.Offers by tender are less common than offers for sale. TenderTenderTo offer a product for sale at a specified price, usually in response to a specific request from a potential purchaser. Government procurement, for example, that is not open to international tendering is a form of nontariff barrier. Hedged tenderHedged tenderAn investor sells a portion of a stock holding short a tender offer in the event all shares tendered are not accepted. For example, investor Q has 5000 shares of XYZ. An acquiring company makes a tender offer of $100 a share when the shares are currently worth $80. Investor Q short-sells 2500 shares after the announcement and the price of the stock has approached $100. Company XYZ purchases only 2500 of the original shares at $100. Investor Q has sold all shares at $100 even as the price of the stock drops on a post-news dip. Noncompetitive tenderNoncompetitive tenderOffer by an investor to purchase Treasury securities at a price equivalent to the weighted average discount rate or yield of accepted competitive bids in a Treasury auction. Noncompetitive tenders are always accepted in full. Self TenderSelf TenderA company buys back a certain percentage of its own shares through a tender offer. Further SuggestionsTenderFixed price tender offer Self tender offer Tender offer premium Creeping tender offer Blitzkrieg tender offer |
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