Which of the following statements is correct?

Group of answer choices

Capital gains earned in a share repurchase are taxed less favorably than dividends; this explains why companies typically pay dividends and avoid share repurchases.

In a repurchase, stockholders can choose to sell or not.

Stock repurchases increase the number of outstanding shares.

The clientele effect is the best explanation for why companies tend to vary their dividend payments from quarter to quarter.