Stock Repurchase

Discuss the signal a large stock repurchase might foretell about management’s outlook relative to the future of a company. Explain whether a repurchase of stock is typically a good or bad sign. Provide a rationale for your response.

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Stock repurchase can be viewed as one alternative of paying dividends since it is seen as another method of returning the cash to investors.  This repurchase mostly occur when a company requests its stockholders to tender all their shares in order for the company to repurchase them (Dittmar, 2000).  Repurchase can boost the shares prices therefore making shares of the stockholders more valuable. Also having fewer shares fewer shares on stock market, will make dividends to be higher…….

APA

201 words