When a fiRm Buys Shares of Their Own Company in the Marketplace

question 77

Multiple Choice

When a firm buys shares of their own company in the marketplace the firm is doing a:

• A) Reverse IPO.
• B) Reverse stock split.
• C) Share repurchase.
• D) Liquidating transaction.
• E) Homemade dividend transaction.

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Definitions:

P-value

A statistical measure indicating the probability of obtaining the observed results, or more extreme, assuming the null hypothesis is true.

ANOVA Table

A table used to summarize the data analysis for an Analysis of Variance, showing sources of variance, degrees of freedom, sum of squares, mean squares, and the F-statistic.

F-ratio

A statistical measure used in ANOVA testing that compares the variances between groups to variances within groups.

P-value

A statistic that measures the probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is correct.