Reason(s) for stock repurchases include all the following except:to acquire shares used in management stock option incentive programs, in which managers can purchase shares of stock at pre-specified prices.to use in stock-based acquisitions of other firms.the firm has the cash and sees its own stock as one of its most attractive investment alternatives.in order to pay less taxes on before-tax profits

The repurchase of stock takes place when a company purchases its own stock on the market and thereby decreases the number of shares outstanding. The company can either buy the shares at the current market price or tender a fixed-price offer to current shareholders. Stock repurchases also allow the firm to cut before-taxes payments. Hardly ever the firm purchases its stock because there are no other attractive investments in the market but it could happen.

However, stock-based acquisitions are those in which a firm purchases another by providing the stakeholders of the target company shares of the new unified company. There is no repurchase of the same company's stock in such a transaction.