If you’ve been reading us for a long time, you’ll know that every three months we put on the investor costume and cover Apple’s bottom line, reporting on revenue, profit, and performance for each division of the company and of each market in which it operates. .
In these press conferences, they also generally speak of a curious operation: Apple’s share buybacks in a quarter. In the last one, the amount of these buybacks was increased by $ 90,000 million, nothing less. Why is Apple buying its own stocks, and sometimes at such high volumes? We will see him.
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First of all: yes, Apple can buy your own stock from you. In the same way that the company’s own employees and managers can also hold shares in it. If you’ve found a business that ends up going public, you have a good deal of stock to secure power over it.
The common case in which the repurchase of shares is carried out is when the value of the shares has fallen to a point where the company itself believes it is undervalued on the stock market
The main effect of this share buyback by the company itself is that, since there are fewer shares in the market, the percentage of ownership of the business by the rest of the investors increases. And as the market sees that the company is investing money in itself, it is perceived that this company is self-confident and the value of the shares tends to rise.
It must also be said that there are more global effects when several companies decide to buy back their own shares invest billions of dollars in themselves. This is precisely what has happened in recent weeks (it is told in Business Insider), that the shares of all these companies tend to rise. And if these companies are among the largest in a market, that whole market can tend to improve.
