A Firm May Announce Its Intention to Buy Its Own

question 34

Multiple Choice

A firm may announce its intention to buy its own shares in the open market like any other investor, also known as a(n) ________.

• A) open market repurchase
• B) tender offer
• C) targeted repurchase
• D) greenmail

---

Definitions:

Convex Preferences

In microeconomics, a condition where consumers prefer a mix of goods over having only one good, illustrated by a convex shape of their indifference curves.

Centered

In a general context, it means being in the middle or at the heart of something; in mathematics, it can refer to the process of adjusting data points or a distribution so that its mean equals zero.

Convex Preferences

Refers to a situation in economics where a consumer prefers a mix or combination of goods over having all of one good, demonstrating a desire for diversity in consumption.

Exchange

The act of giving one thing and receiving another in return, particularly in reference to goods, services, or currencies.