Which of the following statements would explain why a company may want to repurchase its shares?
A)To demonstrate to investors that it believes its own shares are worth purchasing.
B)To obtain shares to reissue to employees as part of an employee stock option plan.
C)To obtain shares that can be reissued as payment for purchase of another company.
D)All of the answers are acceptable.

Question

Quizplus · Accepted Answer

All of the statements provide valid reasons why a company may want to repurchase its shares. Repurchasing shares can demonstrate confidence in the company's performance, provide shares for employee stock options, and acquire shares for use in acquiring other companies.

Which of the Following Statements Would Explain Why a Company