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

Option I is true, as the tender offer can be cancelled if the desired number of shares are not offered. Option II is not a characteristic of a tender offer. Option III is incorrect, as the offer determines the price, not the sellers. Option IV is true, as the offer price is usually higher than the market price in a tender offer. Thus, options I and IV are correct, making option B the correct answer.

Which of These Are Common Characteristics of a Tender Offer