When a Company Buys Back Its Own Common Stock It

question 147

Multiple Choice

When a company buys back its own common stock it is engaging in a

• A)stock split.
• B)stock reissue.
• C)stock repurchase.
• D)stock repo.
• E)none of the above.

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Definitions:

Tax Revenues

The income that is gained by governments through taxation, which is then used to fund public services and infrastructure.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved in a market.

Tax Revenue

The financial earnings acquired by governments via taxation.

Deadweight Loss

The shortfall in economic efficiency arising when a market for a good or service does not meet or cannot meet the equilibrium point.