Series 79: Outside Purchases

Taken from our FINRA Investment Banking Exam

Definition of the term Outside Purchases...

in a tender offer, the prohibited practice of the offeror purchasing the securities by any means other than accepting tenders. This includes purchases by the offeror’s affiliates, advisers to the offeror whose compensation is contingent on the completion of the offer, and anyone else acting in concert with the offeror. A few types of outside purchases are allowed, such as those made in the ordinary course of business.

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