How does a share repurchase work?

Question

Do I have to sell my shares back to the company?

Answer 1

Companies buy their own shares back on the open market, reducing supply, increasing demand/price.

In the case of a merger, the acquiring company will typically convert the former acquired company's stock to the acquiring company's stock at an equivalent market value plus a premium. The share exchange is automatic - there is no choice.

Answer 2

Most of the time, the only way you know this is happening is it got disclosed.

It's usually the company treasurer buying stock on the open market like anybody else, in small pieces when he thinks the price is good.

Answer 3

In some cases yes.

In some cases it is only an offer but generally over the existing price, but no those are not mandatory.

If it is a buyout, it is out of your hands. You are being bought out.