Stock repurchases occur when a company buys its outstanding stock which is often referred to as treasury stock and is reported as a negative value on the company's balance sheet. In a share repurchase, firms use excess cash to buy shares back from investors. These shares are to be held in the corporate treasury and resold if the company needs money. There are several approaches to conducting share repurchases. Consider the following situation: The firm announces a standing offer to buy a fixed number of shares at a specified price, and investors choose whether they'd like to accept the offer. What method is described in the preceding situation? O Tender offer Auction O Direct negotiation Open-market transaction