how stock buybacks make money for shareholders
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You own a company. You have 1,000,001 shares out of 2 million.
The rest you sold in the open market.
You decide after making a bunch of money you want more of the company shares
So you buy 100,000 shares.
When you buy the shares you are bidding the price out. Let’s pretend market price is $1.
So first you offer $1. Then $1.10 then $1.20
All the way up until you hit your share amount or money amount.
Essentially. Share buy backs are an announcement that a rich investor is buying so many shares.
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