4 ms·
Wouldn't a stock buyback reduce the number of outstanding shares, but keep market capitalization roughly constant? The company has less cash, but it has bought
by david-gpu 7y ago
Wouldn't a stock buyback reduce the number of outstanding shares, but keep market capitalization roughly constant? The company has less cash, but it has bought an asset of equal value with it (the shares).
- postingawayonhn 7y agoCompanies aren't allowed to hold shares in themselves. Once the shares are purchased the company cancels them.