Share buy- backs should be used in conjunction with dividends,since a share buy- back does not return capital to the company's shareholders.

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Quizplus · Accepted Answer

Share buy-backs do return capital to shareholders, as they reduce the number of outstanding shares and therefore increase the value of each remaining share. However, it is still important for companies to also offer dividends as a more direct way of returning profits to shareholders.

Share Buy- Backs Should Be Used in Conjunction with Dividends,since