When a company repurchases its own common stock, it is likely that A)

When a company repurchases its own common stock, it is likely that

A) the stock price will remain the same as this is simply an internal transaction.
B) the stock price will increase because the company views the stock as undervalued.
C) the board of directors will be fired for incompetence.
D) the stock price will decrease because the company is creating artificial demand for its stock.

ANSWER

B