Final answer:
When a company repurchases its shares, the total number of shares outstanding is reduced, which is True.
Step-by-step explanation:
The statement is True. When a company repurchases its shares, the total number of shares outstanding is indeed reduced. This process is akin to the company buying back a portion of its ownership from shareholders, thereby decreasing the number of shares held by the public. Just like the sale of a house transfers ownership from one individual to another without financial benefit to the original builder, the sale of shares transfers ownership between shareholders. The company itself does not benefit financially from this transaction, except in the indirect sense that reducing the number of shares can positively affect the stock price and the company's control over its own shares.