Which One of the Following Statements Related to Stock Buybacks

question 10

Multiple Choice

Which one of the following statements related to stock buybacks is correct?

• A) Stock buybacks are a means of obtaining shares for employee stock option grants.
• B) Stock buybacks are becoming rare and may soon disappear totally.
• C) In 2007 and 2008, U.S. companies issued more shares than they repurchased.
• D) Firms are only permitted one large share repurchase program.
• E) Share repurchases are limited to 10 percent of the firm's outstanding shares.

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Definitions:

Stretch Goals

Highly ambitious or challenging objectives set beyond current capabilities and resources, intended to motivate and push individuals or teams to achieve greater accomplishments.

Total Effort

The full allocation of one's energy and resources towards achieving a task or objective.

Motivation

The intrinsic or extrinsic factors that stimulate people to act or behave in a certain way.

Moralizing

The act of expressing opinions about the rightness or wrongness of actions or behavior, often in a judgmental way.