- Stock buybacks reduce the number of outstanding shares, potentially increasing earnings per share and the stock price.
- By repurchasing shares, a company can signal confidence in its financial health, which can positively influence investor sentiment.
- Buybacks can also be a tax-efficient way to return capital to shareholders as compared to dividends.
Been scratching my head a bit about this whole stock buyback business. I got the basics down, you know, when the company buys its own shares back and all. But what's really got me tied up in knots is how this move impacts the company's value. I mean, are we talking a rise, a dip, a plunge into the abyss here? How does it work? Any bright minds care to weigh in here?
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