Question

15.Firms can repurchase shares in the following ways:

1. I) open market repurchase;
2. II) tender offer;
3. III) Dutch auction;
4. IV) direct negotiation with a major shareholder

Answer 1

The correct option is All of the Above

1. The firm can repurchase share from all of the above options, Open market purchase refers to a scenario when the firm buys the shares from investors through stock exchange.

Tender offer refers to inviting the shareholders to sale their shares available to the company and to accept the price decided mutually and the firm can also repurchase share through negotiation with the shareholder who has large number of shares in the company.