Research shows that firms that repurchase their shares exhibit positive stock price returns.

Question

Quizplus · Accepted Answer

Research has found that firms that repurchase their shares tend to experience positive stock price returns, as the demand for the company's shares increases and the supply decreases. This can signal to investors that the company has confidence in its future prospects, and may lead to an increase in shareholder value.

Research Shows That Firms That Repurchase Their Shares Exhibit Positive