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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › share buyback
1. in share buyback, why companies buying their own shares is a good signal ???
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).
