TheOtherGuy2022
:
not being political but its because biden is against it and will shut down the option to perform buy backs ..look it up...some companies are cheating for earnings that way and misleads us but we win for the time being...
ADem11
In One Chart
OP
:
Companies buy back stock for 2 reasons, in the case of chevron, windfall profits, paying a premium for the stock. Second reason is the company feels the stock price does not reflect the actual financial health of the company. What it does is takes for stock out of circulation, making a smaller market for the remaking shares and a possible increased stock price.
Ravi_Sharma : It means buyback price will increase ?
In One Chart OP Ravi_Sharma : Typically, companies buyback shares at a price higher than the current market price.
Ravi_Sharma In One Chart OP : Thanks a lot...learning more
JO cool : Is this for the purpose of reduce divendend payout
KNGRAF Ravi_Sharma : Yes, usually
Eric ng : yes, usually
TheOtherGuy2022 : not being political but its because biden is against it and will shut down the option to perform buy backs ..look it up...some companies are cheating for earnings that way and misleads us but we win for the time being...
ADem11 In One Chart OP : Companies buy back stock for 2 reasons, in the case of chevron, windfall profits, paying a premium for the stock. Second reason is the company feels the stock price does not reflect the actual financial health of the company. What it does is takes for stock out of circulation, making a smaller market for the remaking shares and a possible increased stock price.