Share Repurchase Mechanisms
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What are the different mechanisms available to a firm to use to repurchase shares? Please describe each mechanism.
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Solution Summary
This solution discusses some of the different mechanisms that a firm may use to repurchase shares.
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DEAR STUDENT,
What are the different mechanisms available to a firm to use to repurchase shares? Please describe each mechanism.
The firm can repurchase shares from the investors. The repurchased shares are called treasury stock and the amount of treasury stock will be reduced from the paid up capital of the company. The repurchased stock can be sold again in the market. The following are the mechanisms used by the firm:
1. Repurchase from the open market: The Company can repurchase the shares from time to time from the ...
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