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.
Hi Guys,I have just been discussing on market buy backs with...
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Last
$36.07 |
Change
-0.160(0.44%) |
Mkt cap ! $111.7B | |||
| Open | High | Low | Value | Volume |
| $35.75 | $36.18 | $35.74 | $94.44M | 2.619M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 16116 | $36.07 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $36.08 | 4628 | 2 |
View Market Depth
| Last trade - 16.10pm 01/07/2024 (20 minute delay) ? |
| NAB (ASX) Chart |