When a firm pays out a dividend,the share price ________,and when it conducts a share repurchase at the market price,the share price ________.

Question

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When a firm pays out a dividend, the share price typically decreases by the amount of the dividend because the company's assets are reduced by the dividend payout. In a share repurchase, the share price is generally unchanged because the repurchase is done at the market price, and it reduces the number of shares outstanding, which can increase earnings per share but does not directly affect the share price.

When a Firm Pays Out a Dividend,the Share Price ________,And