Questions relating to companies buying back their own shares from the market.
Questions tagged [share-repurchase]
28 questions
64
votes
9 answers
What happens if a company buys back all of its shares?
As far as I know, it shouldn't happen, a company shouldn't have that much cash to be able buy all of its shares, because the share price should indicate that the company has that much cash in the first place - but let's suppose it happens (e.g. the…
user2414208
- 753
- 1
- 5
- 9
12
votes
2 answers
Why is stimulus to the airlines opposed because of past buy back history?
I was reading this article where the Airline Union is opposing the Fed to grant stimulus to the Airlines. The reason is that Airlines did a lot of buy back in the past four years. Why is the history of buy back in the past the reason?
wonderful world
- 1,015
- 10
- 19
3
votes
2 answers
Why are my country's banks buying their own shares now?
In light of the Covid-19 crisis, my country's banks have seen their shares' prices drop. Last week, the banks announced that they will doing a share buyback, and this week, the prices of the shares have increased...
Is there any reason why the banks…
Kyoma
- 131
- 2
2
votes
2 answers
What's the point of share repurchases?
Let's say a company has a market cap of $11 million, 1 million shares outstanding, no debt, and $1 million in cash. Right now, if I am an investor, I own some shares that are worth $11 each. If the firm repurchases shares at $11, the stock price…
Vasting
- 145
- 1
- 6
0
votes
2 answers
Do share buybacks leave a company vulnerable to predatory shareholders?
I'm following up on my previous question here: Does the concept of non-outstanding shares exist? . The answer to that question was Treasury Shares vs. Outstanding Shares.
Now I'm trying to understand the specific steps that happen in a share buy…
learningtech
- 839
- 5
- 9