Which statement is correct respecting a company's repurchase of its own shares?
A)It provides a tax disadvantage to the shareholder.
B)It enables the company to acquire stock for distribution as compensation to employees.
C)It provides a negative signal to the market.
D)It causes earnings per share to decrease.

Question

Quizplus · Accepted Answer

Repurchasing its own shares allows a company to acquire stock that can be used for various purposes, including distributing as compensation to employees. This can be an effective way to align the interests of employees with those of shareholders.

Which Statement Is Correct Respecting a Company's Repurchase of Its