Self-tender definitions
| Word backwards | rednet-fles |
|---|---|
| Part of speech | The word "self-tender" is an adjective. |
| Syllabic division | self-ten-der |
| Plural | The plural of the word self-tender is self-tenders. |
| Total letters | 10 |
| Vogais (1) | e |
| Consonants (7) | s,l,f,t,n,d,r |
When a company decides to repurchase its own shares in the open market, it is known as a self-tender offer. This process allows the company to buy back a specific number of shares at a set price directly from its shareholders.
Benefits of Self-Tender Offers
A self-tender offer can be a strategic move by a company to return excess cash to shareholders or to increase the value of its shares by reducing the number outstanding. It can also be used to prevent a hostile takeover by making the company less attractive to potential buyers.
Process of Self-Tender
First, the company's board of directors must approve the self-tender offer. Once approved, the company will announce the offer to its shareholders, stating the number of shares it wishes to repurchase and at what price. Shareholders can then choose to tender their shares at the specified price if they wish to sell.
Types of Self-Tender Offers
There are two main types of self-tender offers: fixed price and Dutch auction. In a fixed price offer, the company specifies a set price at which it will buy back the shares. In a Dutch auction, shareholders specify the price at which they are willing to sell, and the company buys back shares at the lowest price that allows it to reach its desired number of shares.
Self-tender offers provide companies with a flexible way to manage their capital structure and return value to shareholders. By repurchasing shares, a company can increase earnings per share and potentially boost its stock price.
Shareholders also benefit from these offers by having the opportunity to sell their shares at a premium to the current market price. It is essential for investors to carefully evaluate the terms of the offer before deciding whether to participate.
Self-tender Examples
- I decided to self-tender my resignation from the company.
- She chose to self-tender her artwork at the upcoming exhibition.
- The author will self-tender his latest book for publication.
- He plans to self-tender his property for sale without a real estate agent.
- The musician will self-tender a performance at the charity event.
- The chef will self-tender a cooking class for beginners.
- She decided to self-tender a proposal for the new project.
- The artist will self-tender an online art workshop for aspiring painters.
- He aims to self-tender his services as a freelance graphic designer.
- She will self-tender her skills as a language tutor to local students.