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Quick thread on understanding buybacks.
1) Why is it done:
If a company is cash rich and has no foreseeable deployment opportunity in its own business it can go for big dividends or use that money to buy back its own shares (1/8)
#InfosysBuyback
#InfosysQ4
1) Why is it done:
If a company is cash rich and has no foreseeable deployment opportunity in its own business it can go for big dividends or use that money to buy back its own shares (1/8)
#InfosysBuyback
#InfosysQ4
2) How does buyback help:
When a company purchases its own shares, its outstanding free float in the market reduces. So just assume if a company had 100 shares in the market and it takes back 10 from the market, the available base is now only 90 shares. (2/8)
#investing
#BuyBack
When a company purchases its own shares, its outstanding free float in the market reduces. So just assume if a company had 100 shares in the market and it takes back 10 from the market, the available base is now only 90 shares. (2/8)
#investing
#BuyBack
