Corporations in the United States can choose from five primary methods to repurchase stocks or shares, including:
Open market: In an open market, also known as the stock exchange, the company simply announces the buyback program and then proceeds to repurchase shares.
Private negotiations: In private negotiations, the share repurchase is negotiated between the company and an individual shareholder.
Repurchase 'put' rights: Repurchase 'put' rights are a stock option granted by a corporation to its shareholders that allows those shareholders to sell their shares back to the corporation at a fixed price within a fixed time period.
Self-tender offer: A self-tender repurchase is a company's offer to buy back their shares at a price that is higher than the current market value.
Dutch auction repurchase: A Dutch auction repurchase allows the corporation to specify a price range in which their shares will ultimately be purchased. Shareholders may tender their shares at any price within the range.