Companies may issue common or preferred stock to generate cash flow. However, sometimes companies will buy back stock that was issued to shareholders.
Discuss at least one reason why a company would buy back its own stock and provide an example to support your points.
In addition, discuss any potential negative effects of the stock repurchase.
Participate in follow-up discussion by changing the fact patterns provided by classmates to show when/why a company may want to reissue its treasury stock.
Provide an example to support your points. Corporate Financial Reporting and Analysis: A Global Perspective
