Reasons for Stock Repurchases Include All of the Following EXCEPT

question 50

Multiple Choice

Reasons for stock repurchases include all of the following EXCEPT:

• A)to sell off shares used in management stock option incentive programs, in which managers can purchase shares of stock at pre-specified prices.
• B)to use in stock-based sell-offs of other firms.
• C)the firm has too little cash and sees its own stock as one of its most attractive sales alternatives.
• D)all of the above
• E)none of the above

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Definitions:

Negative Externality

occurs when a product or decision results in a negative effect on a third party who is not involved in the transaction or decision.

Dioxin Emission

Refers to the release of dioxins, which are highly toxic environmental pollutants, into the environment.

Self-Interested

Behavior driven by personal benefit, where individuals act in their own best interest to achieve their personal goals.

Corrective Tax

A levy intended to motivate individuals to consider the communal costs resulting from adverse external effects.