The repurchase of shares reduces the number of outstanding shares.

Name: The repurchase of shares reduces the number of outstanding shares.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

When a company repurchases its own shares from the market, the number of outstanding shares decreases, as those shares are no longer held by investors and are instead held by the company itself. This often leads to an increase in the value of remaining shares, as the company's earnings are divided among a smaller pool of shares.

The Repurchase of Shares Reduces the Number of Outstanding Shares