Stock repurchase, Finance Basics

Stock Repurchase

The company can buy back also several of its outstanding shares instead of paying cash dividends. This is identified as stock repurchase and or bought back or shares repurchased are called treasury Stock. If several outstanding shares are repurchased, fewer shares would remain outstanding.

By assuming repurchase does not adversely affect firm's earnings, E.P.S. of share would go up. This would conclusion increase in M.P.S. so capital gain is substituted to dividends.

Posted Date: 1/31/2013 2:46:50 AM | Location : United States







Related Discussions:- Stock repurchase, Assignment Help, Ask Question on Stock repurchase, Get Answer, Expert's Help, Stock repurchase Discussions

Write discussion on Stock repurchase
Your posts are moderated
Related Questions
What are the types of financial assets? Types of Financial Assets: a. Loans b. Bank Deposits c. Stocks A share of ownership within a company d. Bonds A promis

A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?   a Current Ratio

Formation of Sole Proprietorship Business When an individual plans to start a business, his or her main objective is to earn profit but there are a number of factors to take in


Constant DPS plus Extra or Surplus 1. Beneath this policy a constant DPS is paid every year. Nonetheless extra dividends are paid in years of supernormal earnings. 2. It prov

Market For Funds Market for Funds and Financial Institutions in Middle Asia 1. Financial markets refer to an elaborate system of the financial institution and arrange

Stock Market Index Definition of Stock Market Index An index is a numerical figure that measures relative change in variables between two type of durations. Examples


Parties include In Central Depository System 1. Government As like for the motive of attracting foreign supporting and investors the infrastructure of capital markets.

Factors contribute to increasing the profitability of a business Several other factors contribute to increasing the profitability of a business. For companies that are highly d