statement 1

问题如下：

In the share buyback discussion, the statement that is the least accurate is:

选项：

A.A.Statement 1.

B.B.Statement 2.

C.C.Statement 3.

解释：

1. Correct because in a greenmail transaction, the company buys back the would-be suitor's shares at a premium to the market price, not at a discount. Unsuccessful takeover attempts have ended with the company buying back the would-be suitor’s shares at a premium to the market price, referred to as a greenmail transaction, often to the detriment of remaining shareholders.

2. Incorrect because it is an accurate statement. A fixed price tender offer can be extended to all shareholders and can set at a fixed date in the near future. A company will make a fixed price tender offer to repurchase a specific number of shares at a fixed price that is typically at a premium to the current market price. By setting a fixed date, such as 30 days in the future, a fixed price tender offer can be accomplished quickly.

3. Incorrect because it is an accurate statement. The open market share repurchase method gives the company maximum flexibility. Open market repurchases are the most flexible option for a company because there is no legal obligation to undertake or complete the repurchase program; a company may not follow through with an announced program for various reasons, such as unexpected cash needs for liquidity, acquisitions, or capital expenditures.

• compare share repurchase methods