If a company buys back x percent of the total shares outstanding, wouldn’t that mean, in theory, that the share price goes up by x percent?
2006-11-23 12:43:41 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
By reducing the number of shares outstanding, it does increase the earnings per share. BUT many of those companies buying back their stock are doing so because they are issuing stock option shares to their "key" employees (read CEO) like mad. So the bottom line is they are giving share holder money to the CEO. Now do you think that is going to increase the share price any?
2006-11-23 12:57:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It may be a indication that the company is doing well.
2006-11-25 02:43:46 · answer #2 · answered by cmac 2 · 0⤊ 0⤋
It should increase the value of the stocks. It doesn't always work.
2006-11-23 20:46:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No.
2006-11-24 14:17:48 · answer #4 · answered by Anonymous · 0⤊ 1⤋