Question

When a firm announces to all of its stockholders that it is willing to buy a fixed number of shares at a specific price, it is referred to as a ___.

Answer 1

When a firm announces to all of its stockholders that it is willing to buy a fixed number of shares at a specific price, it is referred to as a tender offer.

Step-by-step explanation:

When a firm announces to all of its stockholders that it is willing to buy a fixed number of shares at a specific price, it is referred to as a tender offer. A tender offer is a public invitation from the firm to purchase a certain number of shares directly from its stockholders at a set price, usually at a premium to the current market price.