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Q: Why does the stock price of a firm announce that it is repurchasing its shares?
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What is short sell in equity trading?

it 's intraday only, After 3 o clock you have to square of your Short sell Position. :) Short Sell: Method of profiting from a declining stock price by borrowing shares of the stock, selling them at the market price, and then repurchasing the same number of shares at a future date (and at a lower price, if you're lucky) to return them to the original lender. :)


What is term stock split?

Stock split means to increase the existing number of shares to more shares for example if a person has 10 shares and company announce stock split for 2 for 1 it means the person who has 10 shares will have now 20 shares of the same price. it doesnot change the total value of shares investment but change the value per share.


Share price times number of shares?

stock price


What is the market value of a firm?

The stock price multiplied by the number of stock shares outstanding. for example if there are a million shares of stock and the the price is 1 dollar per share then the market value is one million


What is the journal entry for repurchasing common stock as treasury stock?

Debit treasury stockCredit cash / bank


If stock shares are at the price of 0.02 a share how many shares can I by for 150.00?

1500 ÷ 0.02 = 7500


What happens if you do not sell your stock but the price of that stock keeps falling?

If the price of a stock that you own shares of goes down, the value of your investment is going to decrease.


What is normally motivated by a desire to decrease the market price of common stock?

d) Residual Payout policy is the means to decrease the market price of a stock as it is a cash equivalent of Bonus Shares. As on issuance of Bonus Shares the stock price will decrease proportionately so too with Residual Payout in cash the stock price will decrease.


What determines the price of stock?

The market price of a share of stock is determined by the forces of demand and supply. Shares represent partitions in the ownership of a company.


Which is most likely to lead to an increase in the price of company's stock?

Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase.


What is the Difference between bonus share and share split?

Bonus shares is a form of divendends paid in shares while stock split is when the price of a stock goes too high and the company wants to lower the price of the stock. However, some companies do not split their stock. For example, Berkshire Hathaway.


What is the benefit of a stock split?

It brings the stock price back down to a more "affordable" level. On the other hand, a reverse stock split increases the stock price by reducing the amount of shares outstanding.