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

---

Definitions:

Relatively Higher

A comparative term indicating that one variable or item is of greater magnitude or intensity compared to another or the general context.

Competitive Industry

An industry characterized by many sellers, where no single company can control market prices.

Barriers To Entry

Factors that prevent or hinder companies from entering a particular market or industry.

Barriers To Exit

Factors that make it difficult or costly for a company to leave a market or industry.