Multiple choice general knowledge

If a particular Company have announced a Buy Back offer,Given this news , In Most cases will the stock of that company trade ___________

  1. Low

  2. High

  3. Medium

  4. Steady

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Buyback announcements typically signal management's confidence that the stock is undervalued and are viewed positively by investors. The company reduces outstanding shares, increasing earnings per share. This generally creates upward price pressure.