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Is stock repurchases a manipulative way of  setting stock market values.

Is stock repurchases a manipulative way of  setting stock market values.

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Stock repurchase is not a manipulation of the stock market values. Stock repurchase is way of showing that stock is valued more than it is currently priced. It is a tool where management purchases stock from the market at a higher price giving idea to everyone that growth of company is positive in future and stock price will grow accordingly. It tells the public that stock is currently undervalued and it is way of management of saying that it should be valued higher than the current price.

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