What is the term used for a tender offer where stock is offered to shareholders instead of cash?

The term for a tender offer where stock is offered to shareholders instead of cash is an exchange offer. In this type of transaction, a company proposes to exchange a certain number of its shares for the shares of another company or for its own shares held by existing shareholders. This can be advantageous for the company as it allows for restructuring of share ownership without depleting cash reserves.

Exchange offers are often utilized during mergers or acquisitions, making them a common strategy for companies seeking to expand or consolidate their holdings through stock swaps. By offering shares in lieu of cash, companies can maintain liquidity and ensure they have enough capital for operational needs or growth initiatives.

Understanding the nature of an exchange offer is essential, particularly in the context of corporate finance and investment banking, as it highlights different strategies available to companies when dealing with shareholders and their stock. In contrast, options like cash offers involve immediate monetary compensation, reverse mergers pertain to a private company's acquisition by a public company, and rights offerings give existing shareholders the chance to purchase additional shares at a discounted price.