When a Firm Purchases Shares Directly from a Major Shareholder

question 108

Multiple Choice

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

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

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Definitions:

Subscription Revenue

Income earned by a company through the sale of subscriptions for services or products, often recognized over the subscription period.

Trade Magazine Subscription

The cost incurred by a business for subscribing to a publication that targets a specific industry or professional field.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was placed in service.

Liability Accounts

Accounts on the balance sheet that represent obligations of the company, including loans, accounts payable, mortgages, and accrued expenses.