Shareholder return - Share buybacks
6 important questions on Shareholder return - Share buybacks
What is another way to return shareholder equity to shareholders without actually distributing dividends?
What is a share buyback?
What happens to the non-selling shareholders after the share buyback?
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How are the selling shareholders and non-selling shareholders compensated?
- Selling: by receiving cash for the shares they sell.
- Non-selling: by owning a larger part of the company.
Why do companies and shareholders often prefer share buybacks over dividend payments?
Also, a constant share buyback activity can stabilise (or raise) the share price in the market over time, which shareholders also like.
What are treasury shares?
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