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sinister.logic
Why is Xerox repurchasing its shares?
Xerox held a Investor conference yesterday where they announced they bought back USD 2 billion worth of is own shares so far. In my country those shares owned by a company offer no voting rights. Why would any company want to amass its own shares?
                     
 




kamal d
Rating
A stock buyback, also known as a "share repurchase", is a company's buying back its shares from the marketplace. You can think of a buyback as a company investing in itself, or using its cash to buy its own shares. The idea is simple: because a company can’t act as its own shareholder, repurchased shares are absorbed by the company, and the number of outstanding shares on the market is reduced. When this happens, the relative ownership stake of each investor increases because there are fewer shares, or claims, on the earnings of the company.


sara s
Rating
its an economical trick, it will help to rise the shares value


The Answer Detective
Don't worry about the purpose, sometimes get's difficult to understand! Think about it, the company has shares.... buys them back most likely knowing their shares will rise in value... thus creating more profit and then distributing them again at a higher percentage.


icezkori
check out the news


Tom Z
When investors evaluate the value of a company one of the primary benchmarks they use is earnings per share. When Xerox buys back shares they reduce the amount of outstanding shares thus automatically increasing the earnings per share.

Higher earnings per share results in a greater valuation of the remaining shares. i.e. stock price goes up.

That is why you often see a jump in a stock when the company announces a buy back.


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