Firms can use stock repurchases as a dividend substitute.

Name: Firms can use stock repurchases as a dividend substitute.
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Stock repurchases can be used as a way to return value to shareholders, similar to how dividends provide value. By buying back stocks, firms reduce the number of outstanding shares, which can increase the value of each remaining share. This can be seen as a way of distributing earnings to shareholders without having to pay out dividends.

Firms Can Use Stock Repurchases as a Dividend Substitute