Which statement is correct?
A) Stock that has been repurchased must be put in the firm's Treasury and cannot be resold.
B) Most repurchases are mandatory. Investors are obliged to sell part of their holding back to the company.
C) Corporations are much more willing to cut repurchases than dividends.
D) Companies like to smooth repurchases.

Question

Quizplus · Accepted Answer

Corporations are generally more willing to cut back on stock repurchases than dividends because dividends are often seen as a commitment to shareholders, while repurchases are more flexible.

Which Statement Is Correct