The best-price rule (also known by the far more boring designation of "rule 14D-10") is an SEC regulation that requires someone conducting a tender offer to give the same price for all the stock being bought.
A tender offer represents an attempt to purchase a lot of stock at once. Basically, the entity running the tender announces they are open to buying whatever stock they can get (up to whatever limit they impose). In the bad-old days before the best-price rule (it first appeared in 1968), buyers could offer sweetheart deals to certain sellers, buying certain shares for one price, while offering a lower price to the general public.
The best-price rule makes sure everyone gets the same amount for their stock.
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Finance: What is Acting Against Recommen...2 Views
finance a la shmoop what is acting against recommendations hmm
let's say you head to the emergency room with stomach pains the doctor in charge [Man driving fast with stomach pains]
says yep you've got appendicitis but I'm brutally
tired so I recommend you go home well odds are if the doc himself had [Doctor in pain with stomach pains]
appendicitis he'd get someone to take that puppy out stat acting against
recommendations is kind of like that just in the financial world if your
broker tells you to do something he wouldn't recommend for his own [Man discussing finance with his broker]
investments well he has a duty to tell you that he wouldn't do that same thing
in his own case that usually happens when some bonehead tells a broker, hey I
want to bet my life savings on this new IPO well why would anyone act against
recommendations well in the case of the doc maybe he's so tired that he's a [Doctor holding scalpel and falls to the floor]
dangerous menace in the O.R... In the case of your broker well maybe there's
something about your specific situation that makes acting against recommendation
the way to go well as long as they tell you that it's against recommendations
well, they're legally in the cure just don't ask that broker to perform
your kidney transplant [Broker walks into office]
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