Hey mate,
A share buy back is when the company offers to buy back the shares in their company that you own. You don't have to sell it to them, but the offer is there. Usually, they offer to buy the shares at a premium to the market price (in this case, 5% over the trailing 5 day VWAP from memory).
Buy backs usually are a positive sign, as it shows that the company has confidence in the value of the company. Furthermore, when the company buys back the shares, it reduces the number of shares on issue to the public, which reduces dilution and (depending on the magnitude of shares bought back), will mean a greater share price for the remaining shares on issue (consider that the calculation of a share price is SP=market cap/no. of shares on issue).
Hope that helps.
Hey mate, A share buy back is when the company offers to buy...
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Last
19.5¢ |
Change
0.005(2.63%) |
Mkt cap ! $53.02M | |||
| Open | High | Low | Value | Volume |
| 18.5¢ | 20.0¢ | 18.5¢ | $163.1K | 845.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 60000 | 19.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 20.0¢ | 25640 | 1 |
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| Last trade - 15.58pm 18/10/2024 (20 minute delay) ? |
| NVA (ASX) Chart |