When a Public Firm Declares a Stock Repurchase

question 25

Multiple Choice

When a public 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 may rise or remain unchanged.
• C) an investor will receive cash in exchange for a smaller percentage of ownership.
• D) demand drives the stock price up.

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Definitions:

Nuclear Fusion

A nuclear reaction where two light atomic nuclei combine to form a heavier nucleus, releasing energy in the process.

Energy

The capacity to do work, which exists in various forms including kinetic, potential, thermal, electrical, chemical, and nuclear energy.

Radioisotopes

Isotopes of elements that are radioactive, emitting radiation as they decay, used in various industries including medicine for diagnostics and treatment, and in scientific research.

Gamma Rays

High-energy electromagnetic radiation of a very short wavelength, often produced by radioactive atoms and in astronomical phenomena.