What’s the latest?
12-17-2022, 01:42 PM
#837
Gets Weekends Off
Joined APC: Mar 2018
Posts: 181
Share buybacks in and of themselves don’t increase the price of the shares, it just reduces the amount of shares available for public consumption. The company thinks they are undervalued, so they take some shares out of circulation. In some instances, doing so can trick investors into buying more shares, thus driving up volume and share price. If nobody is buying said shares, the share price remains the same, even though there may be less in circulation.
They aren’t exactly correlated, though they can influence one another.
12-17-2022, 02:14 PM
#838
Gets Weekends Off
Joined APC: Feb 2013
Posts: 3,011
By that logic, the share price should have skyrocketed when $50m worth of shares were bought back. But it didn’t, it’s pretty flat over the last 3 months.
Share buybacks in and of themselves don’t increase the price of the shares, it just reduces the amount of shares available for public consumption. The company thinks they are undervalued, so they take some shares out of circulation. In some instances, doing so can trick investors into buying more shares, thus driving up volume and share price. If nobody is buying said shares, the share price remains the same, even though there may be less in circulation.
They aren’t exactly correlated, though they can influence one another.
Share buybacks in and of themselves don’t increase the price of the shares, it just reduces the amount of shares available for public consumption. The company thinks they are undervalued, so they take some shares out of circulation. In some instances, doing so can trick investors into buying more shares, thus driving up volume and share price. If nobody is buying said shares, the share price remains the same, even though there may be less in circulation.
They aren’t exactly correlated, though they can influence one another.
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