Williams Act

Definition:

Amendments to the Exchange Act enacted in 1968 and codified in Sections 13(d) and Section 14 of the Exchange Act. The Williams Act was enacted, in part, to eliminate abuses with cash Tender Offers and requires mandatory disclosure of information regarding cash Tender Offers. Filings and public disclosures with the SEC are also required of anyone who acquires more than 5% of the outstanding shares of a company subject to SEC-registration.

The Williams Act also requires disclosure of securities holdings to alert issuers of stake building in their securities.

Return to Glossary