Final answer:
Option d is the correct answer. A share repurchase by Amazon typically causes an immediate increase in stock price, because it implies a reduced supply and that the company believes its stock is undervalued. However, long-term effects depend on various factors such as earnings performance and market conditions.
Step-by-step explanation:
A shareholder repurchase or buyback occurs when a company buys its own outstanding shares to reduce the number of shares available on the open market. The immediate effect of a share repurchase announcement, particularly for a company like Amazon, is generally an increase in the stock price. This is because the repurchase reduces the supply of available shares and suggests that the company believes its stock is undervalued. Since buybacks can indicate strong future prospects or the provision of an added return to investors, the market often reacts positively. However, the long-term effect on the stock value depends on other factors such as the company's future earnings performance, market conditions, and how efficiently the company can deploy its excess cash.
Therefore, the correct answer is (d) Depends on other factors.