I own some stock in Apple. Yesterday they announced they will be doing a stock buyback. Will I be compelled to sell the stock back to them? Will I receive some kind of offer from Apple? Will nothing happen?
I’ve searched for this and can only find articles about why companies do stock buybacks, not from the perspective of the shareholder
In: Economics
All good stuff here already but this is generally a good thing for investors. The company has excess cash reserves. A stack buy back can increase the value of the stock.
This can also be a bad sign as the company doesn’t know what to do with their cash reserves such as more investment in R&D. Apple has so much cash in hand that, to their management and board, the best decision was to pay back their shareholders.
Last, Apple isn’t doing anything out of the ordinary. This happens all the time. It’s the scale that is newsworthy.
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