ELI5, what is the buyback of shares?
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the idea is in the name: the company is buying back their shares.
now why would you want ot do this? there are a few reasons:
1:the company is currently publicy traded but it wants ot get out of that. In order to do this legally, they need to converge all of the stock they released ot the public and own all of these shares.
2:the company is owned by a circle of shareholders and one of the shareholders wants out: they can sell their shares to the other holders, altenratively the company might wanna buy them back to retire the mfrom the market.
3(the less legal reason): they are doing as part of a an attempt ot short the stock. they are trying ot push the value of their stock up, by reducing the overall supply. a 1/500th share is more valuable than a 1/1000th share if the overall value of the company remains equal. hence more morally bankrupt actos can use this as a tool ot inlfuence market in their favor without outright commiting a crime.
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