When a firm offers to buy its shares at a pre specified price during a short time period it is also known as a(n)
A)open market purchase.
B)tender offer.
C)targeted repurchase.
D)greenmail.

Question

Quizplus · Accepted Answer

The action described is known as a tender offer, where a firm offers to buy its shares from shareholders at a pre-specified price during a short time period. Open market purchase refers to buying shares from the open market, targeted repurchase refers to specific repurchasing of shares from a particular shareholder or group, and greenmail refers to a practice where a hostile takeover target buys back its shares from a potential acquirer at a premium price.

When a Firm Offers to Buy Its Shares at a Pre