When a firm reduces the number of shares to be acquired under a buyback because there are more shares tendered than were sought to be repurchased, it is known as a(n)
A)open market repurchase.
B)off-market buyback.
C)selective buyback.
D)scale-back.

Question

Quizplus · Accepted Answer

A scale-back occurs when a firm reduces the number of shares to be acquired under a buyback because there are more shares tendered than were sought to be repurchased. This is also known as proration.

When a Firm Reduces the Number of Shares to Be