SHOCKS OR SHARES BUY BACK
Stocks/Shares buyback is the repurchasing of shares by
the company that issued them. It happens when the issuing company pays
shareholders the market value per share and reabsorbs that portion of
its ownership that was previously distributed among public and private
investors.
Generally,
when a company buys back its own shares, it effectively reduces its
share capital by reducing the number of shares held by the public in a
way that if the profits of such company remain the same, the company EPS
would increase.
A
company would buyback its own shares for reasons as these; ownership
consolidation, undervaluation and boosting financial ratios.
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