Rule 10b-4

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Rule 10b-4

An SEC rule prohibiting the short sale of securities, the sale of borrowed securities, to an investor making a tender offer. A tender offer is usually made at a premium to the market price of the security; the sale of borrowed securities for such an offer creates the possibility of unsustainable price fluctuations.

Rule 10b-4

An SEC rule that prohibits the tendering of stock by means of a short sale. See also short tender.