A stock repurchase is an investment which is always profitable for a company.

Question

Quizplus · Accepted Answer

A stock repurchase may not always be profitable for a company. It depends on various factors such as the current market conditions, stock price, financial position of the company, and the reason for the repurchase. Sometimes, a stock repurchase may lead to a decrease in the company's cash reserves or may result in an increase in debt. Therefore, it is important for the company to weigh the potential benefits and drawbacks before deciding to repurchase its own stock.

A Stock Repurchase Is an Investment Which Is Always Profitable