Which of the Following Is True Concerning the Practice of Repurchasing

Multiple Choice

Which of the following is true concerning the practice of repurchasing shares when the managers correctly determine that the price of the stock is low?

A) The practice does not benefit either the stockholders who do not sell or those who do sell.
B) The practice benefits the stockholders who do sell more than those who do not sell.
C) The practice benefits stockholders who do not sell and those who do sell equally.
D) The practice benefits the stockholders who do not sell more than those who do sell.