A firm will repurchase its own shares in the market because
A) it can stabilize the market price.
B) the firm believes the shares are selling too low.
C) it could eventually provide benefit to shareholders.
D) all of these options are correct.

Question

Quizplus · Accepted Answer

A firm can repurchase its own shares in the market for a variety of reasons, including to stabilize the market price, to signal that the firm believes its shares are undervalued, and ultimately to provide a benefit to shareholders. Therefore, all of these options are correct.

A Firm Will Repurchase Its Own Shares in the Market