Normal
Re: buy-backWhen you invest in a company, you're doing it to in a return in excess of what you could elsewhere (ie. cash). The return in excess of that is your reward for the risk you take that they won't.If a company does not need its cash for working capital and cannot/won't invest its cash in a new project to generate returns for the investor, the capital should be returned to shareholders. A buyback is one way to do so.That's the theory anyway. I didn't read into the links posted, but the poster was correct when they said that its complicated in that there are many different reasons why a company would do a buy back.
Re: buy-back
When you invest in a company, you're doing it to in a return in excess of what you could elsewhere (ie. cash). The return in excess of that is your reward for the risk you take that they won't.
If a company does not need its cash for working capital and cannot/won't invest its cash in a new project to generate returns for the investor, the capital should be returned to shareholders. A buyback is one way to do so.
That's the theory anyway. I didn't read into the links posted, but the poster was correct when they said that its complicated in that there are many different reasons why a company would do a buy back.
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