What Is a Tender Fee?

The term “tender” refers not only to something soft or affectionate, but it also has financial significance. When an individual or company tries to buy a publicly-traded company by making a payment to its shareholders, this is called making a “public offer”. The fees associated with this offer, especially if the company is purchased and the shares owned by a changed shareholder, are called “bidding fees”.

Bidding fees
A stockbroker usually applies a bidding fee when one group of securities must be converted into another. This fee is not applied by companies that issued stocks or purchased them, but by the broker who is managing the investor’s stock portfolio. This fee usually applies to the implementation of so-called “backroom” work.

To provide an example, if a publicly-traded company buys another publicly traded company, then the first publicly-traded company will often want to release new shares as an alternative to the former shares of the second publicly-traded company. As a fee to convert one set of stocks to another, the broker will charge the investor a small amount of money, which is usually assessed depending on the number of shares that the person holds.

Legal bidding
The term “legitimate bidding”, sometimes shortened to “tender”, refers to the legal currency that can be used to pay for goods or services. Therefore, the “tender fee” can also be used to distinguish between the fee that the person is paying equal to or forbidding, as opposed to the fee that the person is paying equal to or for another property, such as securities.

Other uses
Tendering can also refer to a type of boat. These boats are often used to provide services to other boats. For example, a boat that supplies to other boats can be called a tender. In some cases, the term “tender fee” may apply to payments to these boats for services provided or for the harbor to keep the boats operating.