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We aren't talking about re-issuing shares--we're talking about buying them back to be re-issued at a later date. The act of buying them back would shrink the s
by bcrescimanno 15y ago
We aren't talking about re-issuing shares--we're talking about buying them back to be re-issued at a later date. The act of buying them back would shrink the supply and (in theory) drive up the price.
- deleted 15y ago[deleted]
- adamtmca 15y agoYou are ignoring the growth in supply that would happen because of the re-issue.
- bcrescimanno 15y agoPresumably, the stock would be reissued at a point where forces other than supply & demand would have had an impact on the price as well. Yes, the additional available shares on the market would cause a dip--but that dip would not necessarily negate the other effects that (could have) impacted the stock price since the buy-back. I'm not ignoring the effect; I'm just not viewing it in vacuum.