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      Question

      Which term is called when a company buys its own

      outstanding shares to reduce the number of shares available on the open market?
      A Buyback Correct Answer Incorrect Answer
      B Share repurchase Correct Answer Incorrect Answer
      C Repo Correct Answer Incorrect Answer
      D A & B Correct Answer Incorrect Answer
      E B & C Correct Answer Incorrect Answer

      Solution

      A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market. Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to prevent other shareholders from taking a controlling stake.

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