The distribution of earnings by a firm to stockholders by buying shares of its stock in the financial markets is known as a _____.

Question

Quizplus · Accepted Answer

The distribution of earnings by buying back shares of its own stock in the financial markets is known as a stock repurchase or share buyback. The other options (stock dividend, stock split, stock ratio, and stock effect) refer to different actions related to the company's shares, but not specifically related to distributing earnings to stockholders through repurchasing shares.

The Distribution of Earnings by a Firm to Stockholders by Buying