Best-Price Rule

(redirected from Rule 14D-10)

Best-Price Rule

An SEC rule stating that that a tender offer (an offer by a company to buy back some of its own shares) must be available to all holders of that class of share and that the highest price paid must be the price paid to all holders who take advantage of the tender offer. This rule exists to ensure fairness and prevent favoritism in tender offers.
References in periodicals archive ?
Likewise, Rule 14d-10 requires the bidder to make the offer available to all shareholders and to pay all holders that tender the same "best price." Rule 14d-8 requires the bidder to purchase shares on a prorated basis from all tendering shareholders if the offer is over-subscribed.