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Is A Stock Buyback In The Best Interests Of The Shareholders?
Intel announced it was expanding its buyback plans to a total of $25 billion worth of stock. Target increased its buyback to $2 billion worth of shares. Whole Foods said it would buy back $200 million of its stock.
asked 4 months ago
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There can be many reasons for a stock buyback. It can both be good and bad for the shareholders. Following can be the possible reasons behind a stock buyback:
- Buying back stocks can give a boost to the existing poor financial ratios.
- Company can invest its surplus cash this way
- It reduces dilution and increases shareholder value
- Protection against takeover
In all ways it is somehow good for the shareholders as they get a premium over the current market price of the shares.
answered 4 months ago
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