How do stock buybacks work?

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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

12 Answers

Anonymous 0 Comments

If a company does a stock buyback, typically they just buy on the open market over a period of time. They typically just announce the amount and timeframe so markets know what’s going on. It’s different than if a company goes private and you’re compelled to sell. In the case of a buyback, if you want to hold your shares you can.

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