Tender offer

A tender offer is a public invitation for shareholders to sell their stock at a specific price, usually higher than the current market price. You'll typically see this when one company wants to buy another, or when a company wants to buy back its own shares. It matters because it's a formal, regulated way to acquire a large chunk of stock—the SEC requires detailed disclosures so investors can make informed decisions. For example, if TechCorp wants to acquire SoftwareInc, it might offer shareholders $50 per share when the stock trades at $40, giving them a deadline to decide whether to sell. It's essentially a structured negotiation with rules protecting both sides.