When a company repurchases its own common stock,it is likely that

Question

Quizplus · Accepted Answer

When a company repurchases its own common stock, it indicates that the company views its own stock as undervalued. This can lead to an increase in demand for the stock, which can result in an increase in the stock price. Therefore, option A is the best choice. Option B is incorrect because artificial demand would typically cause an increase in the stock price. Option C is also incorrect because internal transactions can still have an impact on the stock price. Option D is irrelevant and incorrect.

When a Company Repurchases Its Own Common Stock,it Is Likely