I am 15 and want to get started in the stock market. can anyone give me any help on understanding and getting into the stock market for the first time. i dont wanna do anything big for awhile, maybe ...
Additional Details I would assume I'd be buying a house in the next 6-10 months. I'm thinking a 6 month CD, I just wanted to see if there were any other ideas that I hadn'...
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Had to move in with my sick mother and have been cleaning out old stuff and came across this stock paper. It's from Idaho and the company is Great Western Mineral Mining Company. My Great G...
B_Indy
Why would a company buy back and cancel it's own shares?
A share buyback means that a company uses its own money to buy its own shares on the stockmarket.
The motivation for companies doing this could be because of a sense of frustration that they are being undervalued by the market. It could also be because the company is completely stuck for ideas of what to do with its money and can’t think of anything better!
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.
Fordman
To increase the value of their remaining shares.
LondonGuy
It is a way to adjust the debt/equity ratio.
It can be used to reduce the power of other shareholders
It is a way to adjust the company back to an optimum equity ratio and reduce the cost of capital.
raysor
Possibly to enhance shareholder value. If it has too much cash and doesn't think it is wise to invest it or expand or make acquisitions it will buy back its own shares. This will make for increased EPS and possibly DPS. It can be considered a bit negative as it shows the company cannot find anything to invest the money into.
RobisaLone
Most companys do that it looks virbule to an invester, then soon as they get more buyers, they off load their own shares
simon_srwp
It's probably to regain control of the business. When a company sells shares to 'shareholders' it also gives away some business decision making ability. If shareholders want 'x' strategy and the CEO wants 'y', often you'd have to go with what the shareholders want so that they are kept happy. All shareholders want is a return on investment, quickly, they tend not to care about long term goals.
Virgin floated on the stockmarket and soon Richard Branson bought all the shares back as he didn't like losing control...
Hope this helps.
David V
because its owners want it to b entirely under their control as thy are entitled to do
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