Stock repurchases can be tax advantageous and signal messages to the market that the company expects future prosperity.

Question

Quizplus · Accepted Answer

Stock repurchases can be tax advantageous for investors as they can sell their shares at a higher price after the repurchase. Also, repurchases can signal that the company has confidence in its future performance and expects to generate profits, which can be a positive signal for the market.

Stock Repurchases Can Be Tax Advantageous and Signal Messages to the Market