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Arnold25764

04/01/17 4:04 PM

#80774 RE: TattooedTraderFry #80773

This is a good explanation on what happens in a ,"share buyback".

The company buys back some of the shares. What does this tell investors? Typically that the company has a really nice ballance sheet and is looking to bring more of the company ownership back within the company. This is good for investors that hold the stock because that means there are going to be less outstanding shares available to the public. Supply will decrease and the demand will increase causing the price of the stock to shoot up in value. That is thet most basic way of explaining it.