Replies to post #69750 on SPOOZ Inc (SPZI)

[Longstrongsilver]

Gee thanks tips! Yes clearly the overall value wouldn’t change, only the share price. Lol good grief

[TheIrishIntelligence]

My apologies, I was copying/pasting too much (links, quotes) and I made a mistake here - got sloppy and too fast.

Cancelling shares would increase share price not market cap. Market cap only increases if the net share price goes up, net of cancelling.

Share buybacks, net of share sales, would increase market cap.

Thank you for clarifying.

[shotsky]

The market cap (market capitalization) is the number of shares out x the share price. That's it. If shares are bought back, the share price may or may not change. There would be less dilution, yes, but that has nothing to do with market cap. It is probably the simplest equation in the stock market. OS X SP = Market cap. So in principle, the market cap would DROP with a buy back, although we all know that the share price would increase, but that is due to demand increasing.