Stock repurchases:
A) decrease the number of authorized shares.
B) affect every shareholder.
C) are optional to the shareholders.
D) always increase shareholder value.

Question

Quizplus · Accepted Answer

Stock repurchases are optional to the shareholders. It is up to the company's management to determine if they want to buy back their own shares. This decision is typically based on factors such as their financial situation, the company's stock price, and their growth prospects. While stock repurchases may potentially increase shareholder value, it is not a guarantee and depends on the specific circumstances of the company.

Stock Repurchases