When Kimberly-Clark recently repurchased its stock, this action "downsized" the company. This has the opposite financial statement effects as stock issuance.

Question

Quizplus · Accepted Answer

Repurchasing stock reduces the number of shares outstanding, which can increase earnings per share and return equity to shareholders, opposite to stock issuance which increases shares and raises capital.

When Kimberly-Clark Recently Repurchased Its Stock, This Action "Downsized" the Company