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
Everyone already answered but: you do nothing. The company buys stock from people who don’t want it anymore. Because they’re out there buying stock, it’s creating excess demand for Apple stock, and prices go up (or could go up).
Companies may also look to buy when their stock drops to certain levels, say if Apple drops to 170 a share or 165 a share, so it sort of sets up a floor where Apple is supporting the price at that price point. If it’s hovering at 190 they may not buy much that day or week, waiting to buy back when prices dip.
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