Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
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.