What is the consequence of a company repurchasing its shares?

When a company repurchases its shares, the total number of shares outstanding decreases. This is because the shares that the company buys back are removed from circulation, effectively reducing the shareholder base. As a result, the ownership percentage of existing shareholders increases, which can enhance the value of their remaining shares.

This action can lead to various positive effects such as a potential increase in earnings per share (EPS) if the company's profits remain stable or grow, since there are now fewer shares among which to distribute earnings. This can make the company more attractive to investors and possibly increase the stock price over time.

In contrast, the other options do not accurately capture the primary consequence of share repurchase. For instance, repurchasing shares does not increase the number of shares available in the market, and while it can influence a company's debt if financed through borrowing, the repurchase itself is fundamentally about decreasing the number of shares outstanding.