Determine how do respond

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Question (1) Your friend has thought about repurchases of common stock by the issuing company and has concluded that this is unethical. Specifically, this friend says that the company knows more than you do, and if the company decides to repurchase shares, it is taking advantage of shareholders. How do you respond?

Question (2) Your friend has considered stock repurchases. He thinks that it is proper for the company to buy its own shares and subsequently reissue them, recognizing a profit on the re-issuance that would be reported on the income statement. How do you respond?

Reference no: EM132487240

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