Open-Market Stock Repurchases Are a More Convenient Way for a Company

question 39

True/False

Open-market stock repurchases are a more convenient way for a company to distribute large amounts cash compared to dividend payments.

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Definitions:

Incidental Beneficiary

A third party that benefits from a contract between two other parties, despite not being an intended beneficiary.

Contract

A legally binding agreement between two or more parties that outlines mutual obligations.

Creditor

An individual or institution that lends money or extends credit to another, with the expectation of being repaid.

Donee

An individual or entity that receives a gift or donation.