In a minimum holding buy-back the company offers to buy unmarketable parcels of shares from shareholders.

Question

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A minimum holding buy-back is a program in which a company offers to buy small or unmarketable parcels of shares from shareholders who hold less than a certain minimum number of shares. This is done to reduce the number of small shareholders and can be more cost-effective than servicing these small holdings. Therefore, the statement is true.

In a Minimum Holding Buy-Back the Company Offers to Buy