Which of the following statements would NOT explain why a company may want to repurchase its stock?
A) To demonstrate to investors that it believes its own stock is worth purchasing.
B) To obtain shares to reissue to employees as part of an employee stock plan.
C) To obtain shares that can be reissued as payment for purchase of another company.
D) To increase the number of shares of outstanding stock.

Question

Quizplus · Accepted Answer

Repurchasing stock would actually decrease the number of shares of outstanding stock, so option D is the incorrect statement. Options A, B, and C are all valid reasons for a company to repurchase its stock.

Which of the Following Statements Would NOT Explain Why a Company