When a firm repurchases shares the supply of shares is but at the same time the firm's assets _ .

Question

Quizplus · Accepted Answer

When a firm repurchases shares, the supply of shares is reduced because the firm is buying back its own shares from the market. However, the firm's assets decline because it is using its cash and/or other assets to buy back the shares rather than investing in new projects or retaining the cash for other purposes.

When a Firm Repurchases Shares the Supply of Shares Is