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
With a publicly traded stock the company will generally be buying stock on the public markets. All the announcement really does is sets the money aside and puts into motion the process for them to buy the stock.
Because Apple is publicly traded they can use the “stock market” to handle the actual transaction. If a private company did a stock buyback then they would need to get in touch with shareholders in order to determine who is interest in selling and so on just like you are asking. But for a public company they just buy the stock on the open market from whomever wants to sell it.
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