The repurchase of a corporation's own stock will generally have a negative impact on the stock market price.

Question

Quizplus · Accepted Answer

The repurchase of a corporation's own stock can actually have a positive impact on the stock market price, as it can indicate that the company believes its stock is undervalued and can boost investor confidence. However, if the company is using all its available cash for stock buybacks instead of investing in growth or paying dividends, it may have a negative impact on the long-term health of the company and could potentially lead to a decrease in stock price over time.

The Repurchase of a Corporation's Own Stock Will Generally Have