Activision became a public company with an initial public offering of stock on June 9, 1983, at
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1. Do you think it was inappropriate for Activision to offer to reacquire the stock at a lower stock price in October 2002?
2. Would your answer to requirement 1 be different if Activision had not issued additional stock in June 2002?
3. The above Wall Street Journal article also reported that, in December 2002, Activision executives had purchased, for their own personal investment portfolios, 530,000 shares of stock in the company at the then-current price of $ 13.32 per share. If you were an investor, how would you feel about executives buying stock in their own company?
4. Would your answer to requirement 3 be different if you also learned that the executives had disposed of nearly 2.5 million shares of Activision stock earlier in the year, when the price was at least $ 26.08 per share?
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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