How Would the Purchase of Treasury Stock Affect the Market

question 78

Multiple Choice

How would the purchase of treasury stock affect the market price of a firm's common stock?

• A)increase
• B)decrease
• C)no effect
• D)increase or decrease depending on the number of shares purchased

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Definitions:

Contaminant

A substance that makes something impure or unsuitable by the introduction of unwholesome or harmful elements.

Sea Mammals

Marine animals that are part of the mammalian class, including species such as whales, dolphins, and seals, which are adapted to life in the ocean.

PCBs (Polychlorinated Biphenyls)

A group of man-made organic chemicals consisting of carbon, hydrogen, and chlorine atoms, used in various industrial applications, now banned in many countries due to their environmental persistence and health hazards.

Indigenous Population

Ethnic groups who are the original inhabitants of a region, prior to colonization or the establishment of national boundaries.