A business wishes to issue 10m shares by tender. After publishing the advertisement in the required form it receives offers as follows:

1m shares at £5.00 each (that is, offers for 1 million shares at £5 per share)

1m shares at £4.50 each 2m shares at £4.00 each 2m shares at £3.50 each 3m shares at £3.00 each 5m shares at £2.50 each 10m shares at £2.00 each The highest price at which all of the 10m shares could be issued yet each offerer be required to pay the same price per share is £2.50. This is known as the striking price, and is the price at which all 10m shares will be issued: 9m to those who offered above £2.50 and the other 1m to some of those who offered £2.50 exactly. Note that all of the 10m shares are issued at £2.50 each.