Investing term

What is Tender offer?

A public offer to buy your shares at a stated price by a stated date.

A tender offer is a public proposal to buy shareholders' shares at a stated price by a stated deadline, often at a premium to the market price and used to take over a company. You choose whether to "tender" (sell) your shares into the offer or hold. It's a corporate action that demands a decision, and ignoring it means keeping shares whose price may move once the offer resolves.

For example

An acquirer offers $55 a share for a stock trading at $48, asking holders to tender by a deadline — you decide whether to accept the premium.

Tender offer is taught hands-on in Stage 8 — Corporate Actions: What Lands in Your Account.

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Related terms

AcquisitionOne company buys another. The bought company's shares are converted to cash, acquirer stock, or a mix at the closing price.Carve-outA parent company sells part of a subsidiary in an IPO, keeping a stake.Corporate actionAny event initiated by a company that changes its securities or distributes value to holders.Cost basisWhat you originally paid for a holding, used to calculate gains and losses when you eventually sell.
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