by phibins on November 21st, 2008

phibins

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What are the reasons that would make a company 'buy back' their stock?

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  • by dumdum on November 21st, 2008

    dumdum

    They buy their own stock when the price is down because basically they are buying back their own company. Each share of stock is ownership / loan to the comapany; the fewer outstanding shares there are the remaining ones are more attractive and can command a higher price - in theory anyway.

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