A firm may announce its intention to buy its own shares in the open market like any other investor,also known as a(n)
A)open market purchase.
B)tender offer.
C)targeted repurchase.
D)greenmail.

Question

Quizplus · Accepted Answer

An open market purchase is when a firm announces its intention to buy its own shares in the open market like any other investor. This is different from a tender offer, which is a targeted offer to all or some of the shareholders at a premium, or a targeted repurchase, which is a specific offer to buy back shares from selected shareholders. Greenmail is a practice where a third party who has acquired a significant stake in a company demands payment in exchange for not launching a hostile takeover bid.

A Firm May Announce Its Intention to Buy Its Own