An investing practice that involves using borrowed stock to respond to an offer made during an attempted acquisition of some or all of a shareholders' shares. The purchase price is usually at a premium to the market price. This practice is restricted by the Securities and Exchange Commission under rule 14e-4 of the Securities Exchange Act.
Investopedia Says:
Officially, an investor must have a net long position that is equal to or greater than the tender offer made, in order to respond to the offer. A net long position refers to the amount of shares an investor is long reduced by any shares the investor is short in the respective security. Although borrowing shares is allowed in short selling, any attempt to borrow shares in response to a tender offer will lead the SEC to take legal action against such participants.
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