When a firm purchases shares directly from a major shareholder it is also known as a(n):

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When a firm purchases shares directly from a major shareholder, it is called a targeted repurchase. This differs from an open market purchase, where the firm buys shares on the open stock market, or a tender offer, where the firm offers to buy shares from all shareholders at a specified price. Greenmail is a practice where a hostile acquirer buys a significant stake in a company and forces the target company to repurchase the shares at a premium to prevent a takeover. A Dutch auction is a type of auction where the price of the item being sold starts high and is gradually lowered until a buyer accepts the price.

When a Firm Purchases Shares Directly from a Major Shareholder