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    Question

    When a publicly listed company buys back its own shares

    from the market, it is known as:
    A A rights issue. Correct Answer Incorrect Answer
    B A bonus issue. Correct Answer Incorrect Answer
    C A share split. Correct Answer Incorrect Answer
    D A share buyback. Correct Answer Incorrect Answer

    Solution

    A share buyback (or repurchase) is a corporate action where a company buys its own outstanding shares from the marketplace. This reduces the number of shares available, which can increase earnings per share (EPS) and often the share price.

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