Tender offer

Buying shares off-market at a price announced in advance

In detail

The buyer publishes the price, the number of shares and the window, then buys from whoever accepts without going through the market. It is used to take control of a company or to take it private. The price offered is usually above the market, so the shares move towards it on the announcement.

Example

A $1,300 tender offer for a stock trading at $1,000 pulls the price up near $1,300.

Related terms

Management buyout Market capitalization Shareholder M&A (mergers and acquisitions)

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For learning, not investment advice. Decisions are your own.