When a Firm Declares a Stock Repurchase

question 117

Multiple Choice

When a firm declares a stock repurchase:

• A)the number of outstanding shares falls along with the price
• B)the number of outstanding shares falls and the price remains unchanged
• C)an investor will receive cash in exchange for a smaller %age of ownership
• D)demand drives the stock price up

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Definitions:

Fetus

A developing mammal or vertebrate after the embryonic stage and before birth, during which significant growth and organ development occur.

Germ Layer

One of the three primary layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo from which all tissues and organs develop.

Chorion

The outermost fetal membrane in mammals, including humans, contributing to the formation of the placenta.

Ectopic Pregnancy

A pregnancy in which the fertilized egg implants outside the uterus, often in the fallopian tube, and is non-viable.