Compared to Raising Regular Cash Dividends, Initiating an Open-Market Stock

question 81

True/False

Compared to raising regular cash dividends, initiating an open-market stock repurchase is generally not as strong a positive signal to the investors because the repurchase can easily be canceled or scaled back before it is completed.

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Definitions:

Gulf War

A conflict in the early 1990s between Iraq and a coalition of countries led by the United States, following Iraq's invasion of Kuwait.

Eyewitness

A person who directly observes an event and can provide testimony or information about it.

Biased

A tendency to favor or lean towards a particular perspective, conclusion, or response, often in a way that is considered to be unfair or biased against other options.

Tapped

Accessing a resource or obtaining information from a specific source; also refers to gently striking something.