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Offering new shares for tender may mean that not enough funding is raised from the
share issue.
Could you please explain the meaning of this sir?Usually when new shares are offered, they are offered at a fixed price and therefore the company knows how much money they will raise.
With an offer for tender, everyone offering to buy the shares states the price they are prepared to pay and the final issue price is the highest price as which all the shares would then be sold.
This final price might mean that the company does not receive as much money as they were wanting.
(I do explain what an offer for tender is in my free lectures.)
Thank you, sir!
Yes, I did go through all your lectures. I misinterpreted the question.
Absolutely love how you’re active and responding. Really helps students who are studying on their own. Great initiative :))
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