Questions tagged [buybacks]

Stock buybacks refer to the repurchasing of shares of stock by the company that issued them.

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Do companies sell puts when buying back shares?

Say company X has a share price of $80. They think their shares are undervalued, and their board approved a buyback of $1 billion. Can company X use the $1 billion to sell puts at $79, with the idea ...
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How are stock buybacks not considered insider trading?

If, for example, a company knows it is about to have a large, long-term windfall (such as landing a major contract), it could use this knowledge to increase its value by initiating a buyback. How is ...
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Why would a company like Apple be buying back its own shares?

What is the reason that a company like AAPL is buying back its own shares? Does it have too much cash and it doesn't know what to do with it? So it is returning the cash back to investors?
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How do I account for a forced buyback (repurchase) of shares if I buy them back within 30 days?

A company I held shares in forced a buyback of a portion of my shares in them. Within 30 days, I then bought back that same number of shares to maintain my holding and basis. However, taking the two ...
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Are stock buybacks similar to dividends?

I read an article about share buybacks. Tax Benefit In many ways, a buyback is similar to a dividend because the company is distributing money to shareholders. Traditionally, a major advantage ...
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How do share buybacks work?

When a company announces a share buyback program, who do they actually buy back the shares from? Openly traded shares on a stock exchange? Is there a fixed price that they buy back at? If I own ...
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Participating in a buyback - Understanding the benefits and drawbacks

Recently, A company I have invested in offered to buy back a certain percentage of my shares. I've been considering this proposal and here's what I think. Say I bought 10 shares in this company over ...
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Buyback & Split

I receive stock options as part of my compensation package. The stock split a few years ago and rumor has been its about time to split again. Then the company announced a pretty big stock buyback ...