Secondary Market
A company announces a tender offer to purchase a maximum of 1 million shares at $10 per share, with no minimum. If 900,000 shares are tendered and an investor tenders 1,000 shares, how many shares will be purchased from the investor?
Since only 900,000 shares were tendered (less than the 1 million share maximum), all tendered shares will be purchased. The investor's 1,000 shares will be fully purchased at $10 per share. If more than 1 million shares
Complete Analysis & Legal Rationale
Since only 900,000 shares were tendered (less than the 1 million share maximum), all tendered shares will be purchased. The investor's 1,000 shares will be fully purchased at $10 per share. If more than 1 million shares had been tendered, shares would be purchased on a pro-rata basis.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Official Standard: Secondary-market / antifraud framework including Section 10(b) (verify current text).
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.