Answer :
Final answer:
The fair price rule ensures that any increase in price paid for shares must be offered to all shareholders. It falls under securities law and is designed to prevent unfair distribution of wealth in the share market.
Explanation:
The fair price rule states that any increase in price paid for shares tendered must be offered to all shareholders, even those who have previously tendered their shares. This rule falls under the broader umbrella of securities law, which serves to protect investors in the market. The fair price rule ensures that large shareholders cannot manipulate the price of a company's shares to their advantage by forcing any price increase to be shared amongst all shareholders. Hence, this rule prevents the unfair distribution of wealth in the share market.
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