Series 79 practice questionmediumTender Offer Rules
Under the all-holders/best-price rule, which of the following is required in a tender offer?
- AOnly the largest shareholders must be offered the best price
- BAll holders of the same class must be offered the same price and terms✓ Correct answer
- CThe offer must be made to a majority of voting shareholders
- DOnly insiders are required to receive the best price
Explanation
Why B — All holders of the same class must be offered the same price and terms
The rule ensures equal treatment for all holders of the class. Trap answers confuse majority thresholds or special treatment for select groups.
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