We just love futures. Not the tea-leaves-and-crystal-balls kind of futures, though those are, um...neat in their own right...but the investing-in-commodities kind of futures. And, hands down, our favorite commodity is corn. But just because we like investing in corn futures, that doesn’t mean we necessarily want to take delivery of a shipping container full of corn when we buy a corn futures contract. Seriously, what would we do with all that corn? Which is why it’s so great that retenders exist.
Usually, we can just sell a long futures contract before it expires and avoid the whole physical-delivery issue altogether. But if we don’t sell before that magical date, we’ll receive a notice of delivery, which means the corn is...coming. A “retender” happens when we sell the delivery notice for the underlying asset tied to our futures contract. In plain English, this means that we don’t have to take physical possession of the corn because we’ve sold the actual corn delivery to someone else. Which is good, because we’re pretty sure our HOA has rules against having huge crates of corn in our driveway.
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Finance: What is a tender offer?5 Views
finance a la shmoop what is a tender offer isn't that how all offers should
be made you know tenderly like like Elvis and he was the king yeah you know [Man discussing tender offers]
Love Me Tender love me shmoop this last album anyway tendering is just a fancy [Elvis dancing on stage]
semi British II word for asking and it applies most often to governments and
large corporate entities seeking bids and you know for stuff like as part of
its huge commitment to providing true diversity in communities the US [Man wearing giant foam diversity finger]
government is going to build a chain of establishments called
stocks and bonds yeah these stocks and these bonds so there will be bondage [Wooden stocks and furry bonds appear]
parlors in each of the 50 capital cities in America with opposite stylings of a
whip it tenders for offers from contractors who submit bids to build the
building shells the noise reducers the you know leather storage areas the first
aid facilities yeah and it happens and so on why is this hole tender process [Man bent over a table and doctor walks away]
needed like why can't the government just hire their buddies to go out and
build it well if they had no guidelines or um discipline him then the room for
corruption in all kinds of misappropriation and it would be too big [Uncle sam stood beside woman on construction site]
and arrests would be made and cuffs would come out and file not the fun kind
so there's a process the government tenderly asks for bids and then people
you know submit well the same applies to corporate America things like takeover [Men shaking hands]
bids like good I don't know Google's paying all cash to buy Netflix they make
a tender offer at 300 bucks a share to buy all the shares out there why is it
tender well because Google is gently asking and hoping and praying that [Google hugging Netflix stock]
Netflix shareholders will in fact sell them their shares for 300 bucks apiece
once Google has enough share as well they effectively own the company
remember the common shares both the board and they can do with it what they
want hopefully those Netflix errs will you know behave these guys really just [Man smashing TV]
need to Netflix and chill
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What is Legal Tender? Legal tender is the tangible mode of payment used to legally satisfy financial obligations, such as a national currency in pa...