Question : In order to lower the number of shares outstanding, a company will repurchase its own shares from the market. It is called-
Option 1: Issue of Shares
Option 2: Forfieted Shares
Option 3: Buy Back of Shares
Option 4: None of the above
Answer (1)
10th Jan, 2024
Correct Answer: Buy Back of Shares
Solution : When a company buys its own outstanding shares, commonly referred to as repurchasing shares, it lowers the number of shares that are accessible in the open market called buy back of shares.
Hence the correct answer is option 3.
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