A Good Reason for a Stock Repurchase Is

question 33

Multiple Choice

A good reason for a stock repurchase is:

• A)that management believes that the stock is undervalued in the market.
• B)so the company can escape the threat of a future merger or acquisition.
• C)to avoid obligations under an employee stock ownership plan.
• D)None of the above

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Definitions:

Pique Technique

A psychological strategy to capture people's interest by making a request in an unusual manner, thereby increasing the likelihood of compliance.

Social Influence

The effect of others on an individual's thoughts, feelings, and behaviors.

Reciprocation

A mutual exchange of actions or goods, often characterized by a return of a favor or response to an action.

Scarcity Principle

A psychological principle suggesting that people find items and opportunities more valuable when they are perceived as scarce or limited.