[Verse 1] When a company's got cash to spare And wants to boost the stock price fair Instead of paying dividends out Share buybacks is another route They purchase their own shares back home Reducing supply, let profits roam [Chorus] Three ways to buy, remember this song Open market, tender, Dutch auction strong O-M-P for market buys each day Tender offers set a price to pay Dutch lets shareholders name their fee Share repurchases, one-two-three [Verse 2] Open market purchase is the most common way Buy shares slowly on the market every day Through brokers on exchanges where stocks are traded No rush, no pressure, timing can be waited Management controls when and how much to spend Market forces help the buying process blend [Chorus] Three ways to buy, remember this song Open market, tender, Dutch auction strong O-M-P for market buys each day Tender offers set a price to pay Dutch lets shareholders name their fee Share repurchases, one-two-three [Verse 3] Tender offers work a different way Company announces a specific day Fixed price premium above market rate Shareholders decide if they'll participate Usually completed within weeks or a month More expensive but gets results up front [Bridge] Dutch auction starts with a price range wide Shareholders submit bids from every side Company picks the lowest price that works To buy the target shares with all the perks Most fair method for price discovery Each method serves a different strategy [Chorus] Three ways to buy, remember this song Open market, tender, Dutch auction strong O-M-P for market buys each day Tender offers set a price to pay Dutch lets shareholders name their fee Share repurchases, one-two-three [Outro] Buybacks boost the earnings per share Less shares outstanding in the air Alternative to dividends paid Three methods learned, foundation laid
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