ALL-HOLDERS RULE

An all-holders rule is a regulation of SEC that demands a tender offer to be made available for every holder of the same class of the security. The Rule 14d-10 of the Securities Exchange Act of 1934, wherein the All-Holders Rule is specified, emphasizes the equal treatment of the security holders. The utmost importance of this rule is visible during takeover bids, which ensures that any tender offer made by the acquiring company will not only be directed to those shareholders which are in favor of the takeover.