3 ms·

> buybacks are reported after the fact and do not directly alter the share price But the fact itself adds demand for the shares on the market, affecting the sh

• cormacrelf 4y ago
  There's also an open market buyback. And multiple ways of doing it off the open market, often known as a tender offer for a popular method where you get shareholders to bid on the lowest price they would accept within a range of premium buyback prices. Off the market, an offer does become public immediately, that is a necessary component of doing it at all. The sales do not. Directly is the wrong word, there's no more direct way to affect price than a bid/ask/sale of a share. The key is that the information about how much of the stock will actually get bought at what price is delayed on its way to becoming a price signal in the market. Here's an old-ish but good paper about it, showing how this delay can be exploited by those with inside information. Not a loophole but rather another thing to watch out for. https://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?article=5061&context=uclrev https://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?arti...