Series 79 practice questionmediumWilliams Act and Tender Offer Regulation
Under the Williams Act, a tender offer must remain open for a minimum of:
- A10 business days
- B30 calendar days
- C20 business days✓ Correct answer
- D45 calendar days
Explanation
Why C — 20 business days
SEC Rule 14e-1 requires that a tender offer remain open for a minimum of 20 business days from the date the offer is first published, sent, or given to security holders. If the bidder makes a material change to the terms of the offer, including price or percentage of securities sought, the offer must remain open for at least 10 additional business days from the date of the change. This minimum period ensures shareholders have adequate time to evaluate the offer.
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