Describe the different mechanisms available to a firm for repurchasing shares. There are three mechanisms: (Select the best choice below.) A. 1) In an open market repurchase, the firm repurchases the shares in the open market. This is the most common mechanism in the United States. B. 2) In a tender offer, the firm announces the intention to repurchase a fixed number of shares for a fixed price, conditional on shareholders agreeing tender their shares. Even if not enough shares are tendered, the firm is obligated repurchase the shares that are tendered. C. 2) In a tender offer, the firm announces the intention to all shareholders to repurchase a fixed number of shares for a fixed price, conditional on shareholders agreeing to tender their shares. If not enough shares are tendered, the deal can be cancelled. D. 3) A targeted repurchase is similar to a tender offer except that it is not open to all shareholders; only specific shareholders can tender their shares in a targeted repurchase.

There is a lot of discussion in the press at the moment about companies issuing shares and debenture offerings. Required: Explain the meaning of "issuing share capital" and the meaning of "debenture offerings" as a means of obtaining finance for a company. Outline at least 3 key differences between shares and debentures in your answer.

An initial public offering (IPO) is when a corporation sells stock to the general public for the first time.   Question 2 options:   True   False

Briefly explain the term initial public offering (IPO). Why would a company choose to go public?