Williams Act(redirected from Williams Act of 1968)
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Legislation in the United States, enacted in 1968, requiring persons or companies who own or make a tender offer for more than 5% of the common stock of a publicly-traded company to register with the SEC. The information contained in the registration includes the person or company's intentions, the terms of a tender offer, and how the person or company is paying for it. The Williams Act is designed to increase transparency in the market, especially in the event of a hostile takeover. The SEC enforced the Williams Act through Rule 13d and Rule 14d.
A 1968 addition to the Securities Exchange Act of 1934 that requires investors who own or tender more than 5% of a firm's stock to furnish certain information to the SEC. The act also established a minimum period during which a tender offer must be held open. Required information includes the reason for the acquisition, the number of shares owned, and the source of the funds used for the purchase.