Accounting: - a company repurchases its common shares from its existing stockholders
- Primary motive is to repurchase shares when they appear undervalued
- Decreases total equity, decreases shares outstanding (increases EPS) and increases return on equity (b/c total equity decreases)

Question

- a company repurchases its common shares from its existing stockholders
- Primary motive is to repurchase shares when they appear undervalued 
- Decreases total equity, decreases shares outstanding (increases EPS) and increases return on equity (b/c total equity decreases)

Thoughtful Peacock · Accepted Answer

Share repurchases

Accounting

- a company repurchases its common shares from its existing stockholders - Primary motive is to repurchase shares when they appear undervalued - Decreases total equity, decreases shares outstanding (increases EPS) and increases return on equity (b/c total equity decreases)

Share repurchases

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