Repurchases of Shares May Be Viewed as an Alternative to Paying

question 13

True/False

Repurchases of shares may be viewed as an alternative to paying cash dividends.

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Definitions:

Diversifiable Risk

A type of investment risk that can be reduced or eliminated through diversification, including risks specific to an industry, company, or region.

Unsystematic Risk

The risk that is specific to a company or industry, which can be reduced through diversification.

Individual Investor

An individual investor is a non-professional private investor who buys and sells securities for their personal account.

Systematic Risk

The risk inherent to the entire market or market segment that cannot be mitigated through diversification.