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Questions tagged [share-repurchase]

Questions relating to companies buying back their own shares from the market.

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65 votes
9 answers

What happens if a company buys back all of its shares?

As far as I know, it shouldn't happen, a company shouldn't have that much cash to be able buy all of its shares, because the share price should indicate that the company has that much cash in the ...
user2414208's user avatar
9 votes
5 answers

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?
Victor123's user avatar
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0 votes
2 answers

Do share buybacks leave a company vulnerable to predatory shareholders?

I'm following up on my previous question here: Does the concept of non-outstanding shares exist? . The answer to that question was Treasury Shares vs. Outstanding Shares. Now I'm trying to ...
learningtech's user avatar
12 votes
1 answer

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 ...
Allure's user avatar
  • 2,730
6 votes
2 answers

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 ...
NL49's user avatar
  • 289
4 votes
1 answer

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 ...
e12345678's user avatar
  • 157
1 vote
1 answer

Can a company legally depress their stock price in order to supercharge their buyback program?

Let's say a company thinks their stock is undervalued. So they start a share buyback program. Before they actually start buying, they tell the world that the company is in trouble and going to lose ...
Allure's user avatar
  • 2,730