Identifying Share Repurchase Methods

When a company decides to return capital to its shareholders, it can choose from several methods of share repurchase. Understanding these methods is crucial for evaluating a company's capital allocation strategy. One common method involves the company buying back shares directly from shareholders at a specific price. This approach can have various implications on share price, earnings per share, and ultimately shareholder value.

Which of the following methods of share repurchase directly involves the company purchasing shares in the open market?