When a Firm Declares a Stock Repurchase

question 52

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:

Psychological Adjustment

The process of achieving mental and emotional harmony or adapting effectively to environmental demands and stresses.

Memory Changes

The alteration in memory function, which can include improvement or decline, often influenced by aging, stress, and neurological factors.

Older

Refers to a more advanced age, typically denoting an increased number of years in the life of a person, object, or concept.

Cognitive Psychologist

A professional who studies mental processes such as perception, memory, thinking, problem-solving, and decision-making.