M&N stock is currently selling for $22 per share.The firm just made an offer to one of its major shareholders to repurchase all the shares owned by that shareholder for $26 per share.What type of offer is being made?
A)Rights offer
B)Secondary issue
C)Targeted repurchase
D)Tender offer
E)Private issue

Question

Quizplus · Accepted Answer

A targeted repurchase is when a company buys back shares from a specific shareholder, often at a premium, which is the case here with the offer of $26 per share to a major shareholder.

M&N Stock Is Currently Selling for $22 Per Share