Which one of these is generally a repurchase of shares from a single shareholder?
A) Tender offer
B) Auction repurchase
C) Direct negotiation
D)Open-market repurchase

Question

Quizplus · Accepted Answer

Direct negotiation is generally a repurchase of shares from a single shareholder. In this method, the company negotiates directly with the shareholder to repurchase their shares at an agreed price. The other options are:

A) Tender offer: A tender offer is a public offer made to all shareholders to buy their shares at a premium over the current market price.

B) Auction repurchase: An auction repurchase is a public auction in which the company invites all shareholders to bid for the shares they want to sell back to the company.

D) Open-market repurchase: An open-market repurchase is a method of repurchasing shares from the open market, where the company buys back its own shares on the stock exchange.

Which One of These Is Generally a Repurchase of Shares