When a corporation engages in a 10% stock repurchase, it:

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When a corporation engages in a 10% stock repurchase, it purchases for cash 10% of the outstanding shares. This means that the company buys back its own shares from the market, decreasing the number of outstanding shares and increasing the ownership percentage of remaining shareholders. Option A is incorrect as it suggests the company is issuing new shares instead of buying back existing shares. Option C is incorrect as it suggests the company is selling treasury stock, which is stock the company has previously issued and then bought back. Option D is also incorrect as it suggests the company is buying back previously issued stock dividends, which is not possible.

When a Corporation Engages in a 10% Stock Repurchase, It