A stock repurchase plan can be viewed as both a financing decision and an investment decision.

Name: A stock repurchase plan can be viewed as both a financing decision and an investment decision.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

A stock repurchase plan involves a company buying back its own shares from the market, which can be seen as a financing decision as the company is using its resources to repurchase shares, and an investment decision as the company is essentially investing in itself by purchasing its own shares.

A Stock Repurchase Plan Can Be Viewed as Both a Financing