Which of the following corporate actions is voluntary for the investor?

The correct answer is C, A tender offer. A tender offer is considered a voluntary corporate action because it gives shareholders the choice to participate or not. In a tender offer, a company or third party offers to purchase shares from existing shareholders at a specified price, usually at a premium to market value. Investors can decide whether to tender (sell) their shares.

Step-by-step, voluntary corporate actions require active participation or decision-making by the investor. If the investor does nothing, no action is taken on their behalf.

Choice A, a stock split, is a mandatory corporate action—all shareholders are automatically affected, and no decision is required. Choice B, a full merger, is also mandatory once approved, as shareholders are typically required to exchange their shares for new securities or cash. Choice D, pre-refunding, is related to municipal bonds and is not a voluntary action for investors; it involves the issuer setting aside funds to retire debt early.

Thus, the only option where the investor has control and discretion to participate is a tender offer, making Answer C correct.