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How will shareholders benefit from the buyback of shares?

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The shareholders also get to enjoy the benefits of a buyback as much as a company does.

  1. The buyback provides an opportunity to shareholders to exit at a price higher than the current market price.
  2. The buyback increases the percentage of shareholder's ownership in a company due to a reduction in the total number of outstanding shares.
  3. The buyback serves as a health check of a company's healthy financial position.
  4. The capital gains made in buyback are exempted from tax for the shareholders.

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