(Topic 9) Which one of the following is NOT a method used by a company to repurchase stock?

The correct answer is A. Speculation. Because of the growing demand in China for oil, a transportation company decides to assume a long position on oil in hopes of generating short-term investment income. Which of the following describes the firm's strategy?

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Question

(Topic 9)

Which one of the following is NOT a method used by a company to repurchase stock?

Options

ASpeculation
BArbitrage
CHedging
DRisk management

How the community answered

(39 responses)

A
79% (31)
B
5% (2)
C
13% (5)
D
3% (1)

Explanation

Because of the growing demand in China for oil, a transportation company decides to assume a long position on oil in hopes of generating short-term investment income. Which of the following describes the firm's strategy?

Topics

#stock repurchase#share buyback#capital structure#equity management

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