Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Basic Question 11 of 12

Which of the following would not be considered a disadvantage of a stock repurchase?

A. They may not have the same positive effect on stock prices that a cash dividend would have.
B. They may invite lawsuits from stockholders who had insufficient information about future prospects before selling.
C. The firm may pay too high a price for the repurchased stock.
D. They signal managements perception that the company's stock is currently undervalued.

User Contributed Comments 0

You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe regular cash dividends, extra dividends, stock dividends, stock splits, reverse stock splits, and share repurchases

describe dividend payment chronology

CFA® 2024 Level I Curriculum, Volume 3, Module 8.