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What section must he abide by a company wants to buy back stocks? 

This question is part of series 79 Financial Industry Regulatory Authority (FINRA) quiz
Asked by Needaquiz, Last updated: Sep 11, 2020

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Answered Jan 25, 2019

The section one must abide when he or she decides to buy back stocks is Section 10b-18. This law reduces liability and gives companies and their associates a safe harbor when the company or their affiliate repurchase the common stock of the company’s shares. Applying this section, the Securities and Exchange Commission will not consider it as a violation against the Securities Exchange Act of 1934.

however, there are still limitations to this section where the companies need to provide detailed information of share repurchases such as the manner of purchase, price, timing, and volume. These conditions must be met to ensure no company will not violate this rule.

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needaquiz

needaquiz

needaquiz
Needaquiz

Answered Nov 21, 2018

Section 10b-18
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