Which one of these is the most common method of share repurchase?
A) Tender offer
B) Auction repurchase
C) Direct negotiation
D) Open-market repurchase

Question

Quizplus · Accepted Answer

Open-market repurchase is the most common method of share repurchase. In this method, the company uses its cash reserves or borrows money to buy back its own shares from the open market. It does not involve any public announcement, and the company can buy back the shares over an extended period, which provides flexibility and reduces the impact on the stock price. Tender offer, auction repurchase, and direct negotiation are relatively less common methods of share repurchase.

Which One of These Is the Most Common Method of Share