Companies can reacquire their own stock to reduce the likelihood of a hostile takeover.

Name: Companies can reacquire their own stock to reduce the likelihood of a hostile takeover.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

By reacquiring their own stock, companies can reduce the number of shares available for purchase on the open market, making it more difficult for an outside party to accumulate a controlling interest without the company's consent, thus reducing the likelihood of a hostile takeover.

Companies Can Reacquire Their Own Stock to Reduce the Likelihood