Chittorgarh.com Logo
Loading...

What is the buyback of shares and their advantages?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

The buyback of shares is when a company wants to buy back its shares from the shareholders. It is a corporate action with many financial and legal processes. During the buyback process, companies offer a higher than market price rate for the repurchase of shares.

Advantages of Share Buyback for shareholders and company:

  • Quick and better exit route.
  • Better Valuation.
  • Tax efficient way to reward the shareholders.
  • Increases Share Prices.
  • Protects against takeovers.

Comments

Add a public comment...