When a Firm Purchases Shares Directly from a Major Shareholder

question 47

Multiple Choice

When a firm purchases shares directly from a major shareholder it is also known as a(n)

• A)open market repurchase.
• B)off-market buyback.
• C)selective buyback.
• D)scale-back.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.