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.
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An SEC rule that prohibits the tendering of stock by means of a short sale. See also short tender.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.