What Is a Share Buyback

question 3

Multiple Choice

What is a share buyback?

• A) A mechanism by which the company buys a proportion of its own shares from investors
• B) An opportunity for the company to increase dividends without sending a signal that leads to a fall in the share price
• C) An opportunity for shareholders to receive additional shares in proportion to their existing holding instead of the normal cash dividend
• D) A method by which the company can raise the level of borrowings on its balance sheet

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