short tender

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Short tender

Practice prohibited by SEC that involves the use of borrowed stock to respond to a tender offer.

Short Tender

The use of borrowed shares to receive proceeds from a tender offer. That is, if one borrows shares during a tender offer, and then sells them to the party making the offer, one has engaged in a short tender. The SEC prohibits short tenders under Rule 10b-4. See also: Short sale.

short tender

A technique for capitalizing on a tender offer by using borrowed shares acquired through a short sale. A short tender is prohibited by SEC Rule 10b-4.
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