answersLogoWhite

Top Answer
User Avatar
Wiki User
Answered 2008-08-03 18:53:36

I believe what you are referring to is when a corporation buys back it's own stock resulting in less authorized shares in the marketplace. This doesn't have a direct effect on a stocks price but can typically indirectly cause a stocks price to increase. The reason that it is not direct is that the company must spend it's own money to buy back the stock. This results in less shares and each shareholder now holds a larger stake in the company but the resulting company now either has less cash in it's reserves or has issued debt to pay for the stock. Indirectly this can help the price of the stock. The fact that a company is buying it's own stock back would indicate that the company feels it's own shares are a bargin at the current price. It also adds support to a stocks price in that if the price begins to fall due to market conditions the company can step in and buy shares to prevent or limit continued stock depreciation.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Still Have Questions?

Related Questions

What happens to the amount of solar energy that planets receive from the sun as you get further out into the solar system?

It reduces with increasing distance.


What happens to your blood vessels when you smoke?

Reduces the amount of oxygen the blood can carryBody organs receive less oxygen from blood


How does deforestation affect the oxygen cycle?

Deforestation reduces the gross amount of oxygen produced by an ecosystem it reduces the amount of oxygen produced .


What is the advantage of using an inclined plane to lift an object is that it reduces the amount of?

The advantage to using an incline plane (ramp) is that it reduces the amount of work.


What is authorized capital?

Authorized capital is the capital to which an organization is authorised to use in the business and maximum amount that can be used for the working of organization.


The process of photosynthesis reduces the amount of?

carbon dioxide


What is a deduction on an income tax form?

a dollar amount that reduces the amount of taxable income...


What effect do photosynthesis have on the amount of carbon dioxide in the air?

it reduces it


Does a debit reduce an account?

Yes it reduces the amount in the account


A process that reduces the amount of damage mining does to ecosystems is?

Reclamation


When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?

face amount reduces and the policy is made for paid-up value


What happens to your lungs at high altitudes?

at high altitude you have to breath harder which means you have to breath out more which reduces the amount of acid in the blood. after a few days your kidneys can restore their HP


What is the advantage of assigning an ip address using DHCP?

This reduces the amount of configuration required for every individual computer. DHCP is especially used for larger networks.This reduces the amount of configuration required for every individual computer. DHCP is especially used for larger networks.This reduces the amount of configuration required for every individual computer. DHCP is especially used for larger networks.This reduces the amount of configuration required for every individual computer. DHCP is especially used for larger networks.


What is the amount of authorized share capital?

The amount of authorized share capital refers to the number of stock units that a publicly traded company can issue as stated in its articles of incorporation. It can also be as agreed upon by a shareholder vote.


Authorized and issued share capital?

Authorized share capital is that maximum amount of share capital a company can do it’s business and return in article of association of company and company cannot raise more capital then this limit unless changes the limit of authorized capital.Issued share capital is that amount of capital which is issued to public for purchase or invest in company.


Does depreciation reduces a profit?

Depreciation is charged in profit and loss account as expense and it reduces the amount of net profit so in this way it also reduces the profit and income tax payable.


What does a catalyic converter do?

It reduces the amount of emmisions your car lets off


What does it mean when a women reduces the amount she talks to you?

she dont like you anymore


Which reduces the amount of product formed?

conditions that favor the reverse reaction


How does buying a car with good gas mileage reduce the amount of carbon dioxide in the air?

It doesn't reduce the amount of carbon dioxide in the atmosphere. It reduces the amount of gasoline your car burns because there are more, "miles to the gallon," and therefore reduces the amount of carbon dioxide your car produces.


Why do you add butter to homemade jam?

A small amount of butter reduces the amount of foam created when cooking the jam.


What happens to the gas pressure if the gas is released from a small container into a large container?

When you release it into the larger container the pressure reduces from the previous amount so the gas can completely fill the larger container.


The amount of money invested in a corporation by the owners is called?

equity


Purpose of a resonator?

It reduces the amount of harmonic drone created by the exhaust noise.


Why does too much lime reduces the amount of nitrogen?

I think due to ADSORPTION


Still have questions?