Series 79: Dutch Auction Tender Offer

Taken from our FINRA Investment Banking Exam

Definition of the term Dutch Auction Tender Offer...

a mode of tender offer in which the issuer specifies the number of shares it is interested in purchasing and the price range within which it would accept tenders. Interested shareholders then tender their shares, stating an acceptable price within the specified range. If enough shares are tendered, the issuer purchases the shares at the lowest price that allows it to purchase the desired number of shares.

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