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 repurchase
B) tender offer
C) targeted repurchase
D) greenmail

Question

Quizplus · Accepted Answer

A tender offer is when a firm offers to buy its shares at a pre specified price during a short time period. This is different from open market repurchases, which involve purchasing shares on the open market over a longer period of time. Targeted repurchases refer to repurchasing shares from specific shareholders, while greenmail refers to when a hostile acquirer buys a significant amount of a company's shares and then threatens to buy more, forcing the company to buy back the shares at a premium to prevent a takeover.

When a Firm Offers to Buy Its Shares at a Pre