Which of these are common characteristics of a tender offer? I.The offer can be cancelled if less than the desired number of shares are offered.
II)Sellers are unaware that the buyer is the issuer of the security.
III)The offers made by the sellers determine the price.
IV)The offer price is generally greater than the market price.

Question

Quizplus · Accepted Answer

Characteristics I and IV are common in tender offers. The offer can be cancelled if the desired number of shares are not offered, and the offered price is usually higher than the market price. However, characteristic II is not common because sellers should be aware of the buyer's identity in a tender offer. Characteristic III is incorrect because the buyers determine the price, not the sellers. Therefore, the best choice is B, including characteristics I and IV only.

Which of These Are Common Characteristics of a Tender Offer