If After a Repurchase, There Is a Reduction in the Market

question 169

Multiple Choice

If after a repurchase, there is a reduction in the market price of the remaining shares:

• A)value is passed to those shareholders who sold at the expense of those who didn't.
• B)value is passed to the continuing shareholders at the expense of management.
• C)value is passed to those shareholders who sold at the expense of management.
• D)value is passed to the continuing shareholders at the expense of those who sold.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.

Car

A motor vehicle with wheels designed for transport, usually propelled by an internal combustion engine or an electric motor.

Truck

A vehicle engineered for the purpose of transporting goods or cargo.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing between two or more options.