When a company issues shares,it reports a cash inflow from financing activities; when it repurchases shares,it reports a cash outflow for financing activities.

Question

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When a company issues shares, it receives cash inflow from financing activities as people invest in the company. On the other hand, when a company repurchases shares, it will spend cash, resulting in a cash outflow for financing activities.

When a Company Issues Shares,it Reports a Cash Inflow from Financing