The phrase "Tender of Issue" is spelled with the phonetic transcription /ˈtɛn.dər əv ˈɪ.ʃu/. The word "tender" is pronounced with the stress on the first syllable and an "e" sound as in "pet." The word "issue" is pronounced with the stress on the second syllable and a long "i" sound as in "eye." Together, the phrase means the act of presenting or offering a document or security for acceptance. Proper spelling is important to ensure clear communication in legal or financial contexts.
Tender of issue refers to the process of offering or proposing securities for sale to investors in the financial market. It primarily involves the sale or issuance of new securities by a company or government entity. This term is commonly used in the context of initial public offerings (IPOs) or bond issuances, where the issuing entity seeks to raise capital by selling its securities to potential buyers.
During the tender of issue, the issuing entity sets the terms and conditions for the sale of its securities, including the quantity of shares or bonds to be offered, the price at which they will be sold, and any specific rights or features attached to the securities. The tender process may be managed by a financial institution acting as an underwriter, who assists the issuing entity in marketing and selling the securities.
Investors interested in participating in the tender of issue typically submit bids or offers indicating the quantity of securities they are willing to purchase and at what price. The issuing entity, in turn, evaluates these bids and determines the final allocation and price at which the securities will be sold. Once the tender process concludes, successful investors receive the allotted securities, while unsuccessful bids are returned.
The tender of issue is a significant event for both the issuing entity and potential investors, as it allows the former to raise capital for various purposes and enables the latter to invest in new securities and potentially profit from their future performance.