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
You will not be compelled to sell your Apple stock back to the company. A stock buyback is when a company buys back its own shares on the open market, reducing the number of outstanding shares. This can increase the value of the remaining shares.
As a shareholder, you will not receive a direct offer from Apple to sell your shares back to them. However, you may see the price of your Apple stock increase as a result of the buyback. You can choose to sell your shares at any time, either to Apple if they are buying on the open market or to another investor.
Latest Answers