
You often hear the news about the company’s buyback. so what is the buyback of shares?
Warren Uncle says that the best investment you can do is “INVEST IN YOUR SELF”.
As the name defines the action, In this company repurchases its shares from the market at a particular price.
Companies do invest in their own shares which they buy from existing shareholders.
There could be n number of reasons for a company to go for a buyback of shares.
we have tried to explain some of them below:
Well, these two are considered as a hint for the investors that the company has no opportunity in the future for growth. Management of the company is in dilemma about the cash of the company.
Post dividend you will be considered as a shareholder but post buyback(if accepted by the shareholder) you won’t be considered as a shareholder.
Three types of tax are levied on dividends. Buybacks are based on past DDT deductions.
Dividends are regular but buybacks are not.
Generally, there are three types of dividends but there is no specific type of buyback.
The number of outstanding shares that are floating freely in the market is going to reduce post buyback, but these shares are not going to reduce in case of dividends.
we are trusting in our own company. Let's do a buyback
— RuPay Rajat (@rupayrajat) July 12, 2022
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