Tender offer

A company or buyer offer to purchase shares from shareholders, a liquidity event.

A is an offer to buy shares from existing holders, often at a set price. Employees may participate when a company goes private or repurchases stock.

Tax on a tender sale is generally a capital event (gain or loss from sale) plus any wage income if the transaction is structured differently. Read the offer documents.

Tender offers differ from routine open-market sales: Deadlines, eligibility, and proration rules are set in the offer materials.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.