When a firm repurchases shares,the supply of shares is ________,but at the same time,the firm's assets ________.

Question

Quizplus · Accepted Answer

When a firm repurchases shares, it reduces the supply of shares by taking them off the market. However, this action does not impact the firm's assets, which remain the same. As a result, the correct choice is A, where the supply of shares is reduced, and the firm's assets decline.

When a Firm Repurchases Shares,the Supply of Shares Is ________,But