The repurchase of a corporation's own stock will generally have a negative impact on its price.

Question

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The repurchase of a corporation's own stock can actually have a positive impact on its price. This is because it shows that the company believes its shares are undervalued and is willing to invest in them. It can also decrease the supply of shares on the market, which can increase demand and therefore the price. However, if the market perceives the buyback as a sign of financial weakness or lack of growth opportunities, it could have a negative impact on the price.

The Repurchase of a Corporation's Own Stock Will Generally Have