A formal proposal to purchase a given number of shares of a firm's stock at a specified price is a ________.
A) golden parachute
B) call option
C) put option
D) tender offer

Question

Quizplus · Accepted Answer

A tender offer is a formal proposal by a prospective buyer to purchase a certain number of shares of a company's stock at a specified price. A call option is an option to buy a stock at a certain price, while a put option is an option to sell a stock at a certain price. A golden parachute is a severance package that provides financial benefits to executives in the event of a company takeover or merger.

A Formal Proposal to Purchase a Given Number of Shares