Why do companies buy back their own shares?

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Why do companies buy back their own shares?

In: Economics

6 Answers

Anonymous 0 Comments

Let’s say you have 4 shareholders who own 1 share at 25% each. Now the company decides to buy back shares. So they buy back 1 share. Now they have 3 share holders who own 33%. Now you get a larger piece of the profit. It increases the ownership stake of the existing share holders.

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