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When a company buys back shares, the number of outstanding shares decreases. That's the whole reason for buying back shares. See http://www.investopedia.com/art
by tinkerrr 12y ago
When a company buys back shares, the number of outstanding shares decreases. That's the whole reason for buying back shares. See http://www.investopedia.com/articles/investing/112013/impact-share-repurchases.asp http://www.investopedia.com/articles/investing/112013/impact... for a basic introduction to share buybacks.
- coralreef 12y agoI see, so even if outstanding shares is reduced, each share becomes "more valuable" as EPS will improve. So perhaps the market cap will end up balancing itself out?