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share buyback

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › share buyback

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • June 6, 2018 at 5:34 pm #457163
    thomas1212
    Member
    • Topics: 45
    • Replies: 16
    • ☆☆

    1. in share buyback, why companies buying their own shares is a good signal ???

    June 6, 2018 at 6:49 pm #457211
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    It means they have spare cash which suggests they are doing well 🙂

    Shareholders like it, because those that choose to sell get the money. Those who not sell find that their shares are worth more (because there are fewer shares to divide the value of the business between).

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  • The topic ‘share buyback’ is closed to new replies.

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