Question

A firm can repurchase shares through a(n) ________ in which it offers to buy shares at a prespecified price during a short time period—generally within 20 days.

Answer 1

The correct answer to the following question is Tender offer .

Step-by-step explanation:

Tender offer can be defined as an offer made by an acquirer ( who can be any individual purchaser or the company itself ) to purchase all or some number of shares from the stockholders shares in a company. Here the purchaser is offering a price that is premium to the market price. As per the SEC ( securities exchange commission ) any purchaser who is acquiring 5% or more percent of shares of the company has to inform SEC and exchange about it.