7) Insider trading: 14e-3

Question 1

14e-3: re

Answer 1

tender offers

Question 2

tender offer: def

Answer 2

offer directly to shareholders to buy their stock (usu for more than the asking price)

Question 3

target: def

Answer 3

the company whose stock we’re trying to buy

Question 4

14e-3: rule

Answer 4

no false/misleading statements/omissions
no fraudulent, deceptive, or manipulative acts

wrt tender offers

Question 5

14e-3: elements

Answer 5

1) person receives material, nonpublic info re tender offer (from bidder or target)
2) knows or should know the info is not public
3) buys or sells stock before the bidder publicly announces the tender offer
4) bidder must have commenced or taken steps to commecne the bid