What is a tender offer?

A tender offer is defined as an offer made by an individual or company to purchase some or all of shareholders' shares at a specified price, typically at a premium over the current market price. This is done to encourage shareholders to sell their shares, allowing the offeror to acquire a controlling interest in the company or to buy back shares to reduce outstanding shares.

In the context of this question, the correct choice emphasizes the nature of a tender offer as an outright purchase proposal directed at shareholders. This mechanism is often utilized in mergers and acquisitions, where a company may want to take over another firm or secure a significant stake in it by incentivizing shareholders to sell their shares.

Other answer choices reflect different concepts. For instance, raising equity through financing does not specifically indicate a tender offer; instead, it relates to broader capital-raising strategies. A proposal for a joint venture involves collaboration between businesses for a specific project or initiative but is unrelated to the buyback or purchase of shares. Lastly, a strategy for dividend payments pertains to how a company returns profits to its shareholders rather than acquiring shares from them. Thus, the clear focus of a tender offer as a mechanism for purchasing shares is what distinguishes it as the correct answer.