Hi Guys,
I have just been discussing on market buy backs with some people. We have decided that for various reasons they should not be allowed to continue in current form. I am using NAB as a example.
1. Market manipulation - at times the buyback has constituted upwards of 25% of the days volume. Surely this hinders a fair and reasonable market.
2. Price Manipulation - A large scale buy back must effect the true market price. Surely this hinders a fair and reasonable market.
3. Shareholder responabilities - Supporting the price by buy back cannot be good for shareholders. The company is paying too much for the shares.
4. Broker behaviour - It is in the best interests of the buy back broker for the price to be higher as it gives them a higher maximum price.
5. Broker Behaviour - the buy back broker should only be able to bid for stock. They should not be able to "hit the offer". Surely this hinders a fair and reasonable market.
I am interested in the thoughts of others. Remember that NAB is an example so this is not a bank bashing thread.
Should Buy Backs be Banned???
-
- There are more pages in this discussion • 25 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add NAB (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$37.11 |
Change
0.170(0.46%) |
Mkt cap ! $113.6B | |||
| Open | High | Low | Value | Volume |
| $37.04 | $37.19 | $37.03 | $6.707M | 180.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 123 | $37.11 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $37.13 | 666 | 5 |
View Market Depth
| Last trade - 10.12am 30/09/2024 (20 minute delay) ? |
| NAB (ASX) Chart |