5 ms·
Shares that are bought back by a company are destroyed. Thus, increasing the value of the remaining shares.
by kugutsumen 6y ago
Shares that are bought back by a company are destroyed. Thus, increasing the value of the remaining shares.
- thisarticle 6y agoI’d be interested in the mechanics of how that works. I understand buying and selling of shares, but do you just got it the exchange and tell them you want the shares destroyed or?
- encoderer 6y agoI shit you not somebody writes "canceled" on the paper shares and moves them to a separate holding area.
- tinus_hn 6y agoBut what if they are bought by another company? That the original company controls?
- valuearb 6y agoThat doesn’t reduce share counts.
- coldtea 6y agoShares that are bought back, buy back ownership of the company though, no? If in a trivial example, they buy back all the shares but 1. Would the person holding that last 1 share have suddenly 100% of Apple?
- tinus_hn 6y agoDon’t forget they can’t buy shares without someone selling them. So if they have bought so many shares back there’s only 2 left, these two people each control 50% of the company and aren’t going to sell that share (for a small amount)
- jerry80 6y ago>Would the person holding that last 1 share have suddenly 100% of Apple? Yes!