________ occurs when a firm buys back some of its own common shares.
A)A leveraged buyout
B)An IPO
C)A share repurchase
D)Secondary offering

Question

Quizplus · Accepted Answer

A share repurchase occurs when a firm buys back some of its own common shares from the market. This can lead to a reduction in the number of outstanding shares and an increase in the value of remaining shares. It is also known as a stock buyback. A leveraged buyout is a type of acquisition in which a company is purchased using a significant amount of borrowed funds. An IPO (initial public offering) is the first sale of stock by a company to the public. A secondary offering is a sale of stock by a company that has already gone public.

________ Occurs When a Firm Buys Back Some of Its