Questions tagged [share-repurchase]

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

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56
votes
9answers
20k views

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 ...
9
votes
5answers
2k views

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?
-1
votes
2answers
159 views

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 ...
12
votes
1answer
2k views

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 ...