Final answer:
A firm authorizes a trustee to repurchase shares using an open market repurchase technique, which can increase control over its equity and potentially boost the value of remaining shares.
Step-by-step explanation:
When a firm authorizes a trustee to repurchase shares as they become available, they are using an open market repurchase technique.
In an open market repurchase, the company buys its own shares on the stock market, similar to any other investor.
This could result in the company gaining a larger control over its own equity and potentially increasing the value of remaining shares by reducing supply.
It can be an effective way to return capital to shareholders, as shares that are repurchased are often retired and provide an indirect method to distribute cash to shareholders.