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Why would a company repurchase their own stock?

a. It is required to by the law after1 year

b. To dilute the outstanding shares

c. To put cash in the stockholder's hands without issuing a dividend

d. To boost the share price

e. None of the above

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Question added by Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC
Date Posted: 2015/08/11
Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

B) To dilute the outstanding shares is correct answer..

Mehboob Ali Laghari
by Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union

It greatly depends on the situation the stocks are repurchased. However, Option B & D both are possible. Thank you Michael for invitation.

D,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

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