From previous posts we get a bright idea how companies are listed (In fact
company shares) in the share markets,how they are sold in open market and how
speculators/traders Inverters make money from it,and so on.. Today let us have
a look on BuyBack of shares...
By its name buyback indicates 'purchasing back which have sold before'. Here it mean the same,When a company itself buys its shares back which have sold by it before, it is nothing but "Buy Back of shares or securities".
The main objective or need of the company to Buy back its shares is to reduce the number of shares on the market by which it can increase the value of shares.To know how it help to increase its value,lets go with a simple example.Think a company share value have being falling due to the negative impacts,in such scenario company tends to buy its shares back and when the condition set right they make them to float in the market.This is one of the reasons but not the only reason.They may be other objective of the company to buy its shares back.
But very few companies go with the buying their shares back ,because they need to spend huge to get all the shares back.Recently in India Reliance announces that they gonna buy their shares back with the min.price of Rs.870 per share and they gonna spent Rs.104billion to do it...
I hope when you read a newspaper and when you come across this word you would not scratch your head, i hope this post will make you clear of BuyBack of shares..
we will be discussing about "various causes to stepping down or stepping up of stock market in upcoming posts...
By its name buyback indicates 'purchasing back which have sold before'. Here it mean the same,When a company itself buys its shares back which have sold by it before, it is nothing but "Buy Back of shares or securities".
The main objective or need of the company to Buy back its shares is to reduce the number of shares on the market by which it can increase the value of shares.To know how it help to increase its value,lets go with a simple example.Think a company share value have being falling due to the negative impacts,in such scenario company tends to buy its shares back and when the condition set right they make them to float in the market.This is one of the reasons but not the only reason.They may be other objective of the company to buy its shares back.
But very few companies go with the buying their shares back ,because they need to spend huge to get all the shares back.Recently in India Reliance announces that they gonna buy their shares back with the min.price of Rs.870 per share and they gonna spent Rs.104billion to do it...
I hope when you read a newspaper and when you come across this word you would not scratch your head, i hope this post will make you clear of BuyBack of shares..
we will be discussing about "various causes to stepping down or stepping up of stock market in upcoming posts...
3 comments:
Stock buybacks means repurchasing of stock by the company that issued them. A buyback happens when the issuing company pays shareholders the market value per share and recover that portion of its ownership that was previously distributed among investors.
stock tips
Both Technical and Fundamental indicator showed here with best example. Nice to read daily
Trade India Research
But wanna admit that this is very helpful , Thanks for taking your time to write this. The article will help to beneficial in stock exchange. Help on iOS emulators here
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