you do this when you (as a company) have money that you – somehow – cant invest in a manner that is profitable for you.
since that money is part of the evaluation that influences your stock price buying back shares in theory could leave the stock price unchanged. however usually your business does something that is better than storing money on a bank account.
so any profit you make from now on will be distributed amongst fewer shares. this means anyone keeping their share will make more money in the future. this makes the shares more attractive. this drives up the stock price.
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