Series 79 practice questionmediumTender Offer Rules
What is the effect of a subsequent offering period during a tender offer?
- AIt extends withdrawal rights for shareholders
- BLate tenders at the same price, without withdrawal rights✓ Correct answer
- CIt requires the acquirer to pay a higher price for newly tendered shares
- DIt reduces the minimum tender period to 10 business days
Explanation
Why B — Late tenders at the same price, without withdrawal rights
A subsequent offering period allows non-tendering shareholders to tender at the same price, but they lose withdrawal rights. Confusing this with extending withdrawal rights is a frequent error.
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