Australian firms often repurchase shares at a price that is ________ the market price of the shares at the time the buyback is announced.

Question

Quizplus · Accepted Answer

Australian firms often repurchase shares at a price that is lower than the market price of the shares at the time the buyback is announced, as this can provide a positive signal to the market and increase shareholder value. By buying back shares at a lower price, the firm increases the value of the remaining outstanding shares, and also signals to the market that it believes its shares are undervalued. This can lead to increased investor confidence and potentially higher share prices in the future.

Australian Firms Often Repurchase Shares at a Price That Is