5 ms·
No it doesn't. There are fewer shares in the company, but the company is worse less. There's no good reason to think that in general the remaining shares in a c
by gweinberg 6y ago
No it doesn't. There are fewer shares in the company, but the company is worse less. There's no good reason to think that in general the remaining shares in a company will be worth more or less after buyback than what they would be worth if the company had simply held onto the money.
- jacquesm 6y agoTypically, when there is demand the price goes up, the stock price is not hard linked to the company value, it can lag, lead or even temporarily be correct but generally speaking it takes a while for an over or underpriced stock to catch up to the real value, long enough that there are whole industries dedicated to spotting these differences.