Which One of the Following Statements Related to Stock Repurchases

question 64

Multiple Choice

Which one of the following statements related to stock repurchases is correct?

• A) An open market stock repurchase increases the total wealth of a shareholder if you ignore taxes, costs, and market imperfections.
• B) Targeted repurchases must be offered to all shareholders but can be done in steps such that only a portion of the shareholders have the option to sell at any one point in time.
• C) When a company wishes to repurchase shares in the open market, it will do so in a special trading session that is set up by the SEC.
• D) A company may spend more cash over the course of a year on stock repurchases than it does on cash dividends.
• E) Tender offer prices must be set equal to the opening market price on the day the tender offer is announced.

---

Definitions:

Self-Oriented Pronouns

Pronouns that focus on the speaker, such as "I," "me," "my," and "mine," often used to express personal experiences or viewpoints.

Nonverbal Interpretation

The process of making sense out of nonverbal signals that others send to us, which includes understanding gestures, facial expressions, and body language.

Culture-Based

Pertaining to, influenced by, or arising from the customs, beliefs, art, and collective lifestyle of a particular society or community.

A-OK Sign

A hand gesture in which the thumb and index finger touch to form a circle, signaling that everything is fine or acceptable.