4 ms·
So pre windfall market cap is 1 mil. Say windfall is 1 mil. Post windfall market cap is 2 mil. (1 mil for company + 1 mil in cash) Company buys 500 shares at
by JamesBarney 4y ago
So pre windfall market cap is 1 mil.
Say windfall is 1 mil.
Post windfall market cap is 2 mil. (1 mil for company + 1 mil in cash)
Company buys 500 shares at 2,000. So the company is now worth 1 mil again but there are 500 shares. 1 mil / 500 shares is 2k per share.
- rileymat2 4y agoYes my last sentence was wrong, however as you can see it was 2k a share before the buyback but after the windfall and ended at 2k a share. The buyback did nothing, it was the windfall that moved the price.