Which of the Following Is NOT a Possible Result of a Share

question 68

Multiple Choice

Which of the following is NOT a possible result of a share buy-back?

• A) Removing a large number of shares from circulation can change the ability of certain shareholders to control the company.
• B) If the number of remaining shares is relatively small, the remaining shares will be less liquid.
• C) The company will decrease its leverage ratio (debt-to-equity ratio).
• D) By repurchasing shares when they are undervalued, managers can effectively transfer value from selling shareholders to shareholders who don't take part in the buy-back.

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Definitions:

American Psychological Association

A professional organization representing psychology in the United States, dedicated to advancing psychology as a science, profession, and means of promoting health and welfare.

Animal Experiments

Research studies conducted on non-human animals to investigate biological, behavioral, or psychological phenomena.

Dendrites

Dendrites are the branching extensions of a neuron that receive signals from other neurons or sensory stimuli, playing a critical role in the transmission of neural signals.

Neurotransmitters

Chemical messengers that cross the synaptic gaps between neurons. When released by the sending neuron, neurotransmitters travel across the synapse and bind to receptor sites on the receiving neuron, thereby influencing whether that neuron will generate a neural impulse.