Repurchasing shares
A)increases the number of shares outstanding.
B)decreases the number of shares outstanding.
C)has no effect on the number of shares outstanding.
D)splits shares in half.

Question

Quizplus · Accepted Answer

Repurchasing shares means that the company is buying back its own shares from the market. This leads to a decrease in the number of shares outstanding, as the shares are no longer held by investors and are instead held by the company. Therefore, option B is the correct answer.

Repurchasing Shares