SHARE BUY BACKS FOR PUBLIC COMPANIES WHY AND HOW THEY DO OR DON'T WORK

SHARE BUY BACKS FOR PUBLIC COMPANIES WHY AND HOW THEY DO OR DON'T WORK Stock buy backs are used by public companies to reduce the numbers of shares that are outstanding to reduce the public float and to increase earnings per share. The fewer shares in existence the higher the earnings per share will be and perhaps the higher the price the shares will trade at on the open market. Some companies use this tool to try to drive up the share price to stop any attempt of a hostile takeover. Activist investors will push boards of directors to use stock buybacks to try to create a short squeeze against short sellers. Sometimes stock buy backs work out and other times they don't. Capital used to buy back shares is cash not being used to grow the business. Apple has purchased over 2 billion of it's shares back in the past 8 years alone using over $385 billion. #appleinc #stockbuybacks #stockmarketswithbruce
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DISCLAIMER: These videos are for educational purposes only. Nothing in this video should be construed as financial advice or a recommendation to buy or sell any sort of security or investment. Consult with a professional financial adviser before making any financial decisions.

Видео SHARE BUY BACKS FOR PUBLIC COMPANIES WHY AND HOW THEY DO OR DON'T WORK канала Stock Markets With Bruce