A trader on the New York Stock Exchange (NYSE).
Image: dpa
Companies all over the world are currently presenting their quarterly figures – and often announcing that they want to buy back their own shares. What investors should consider.
Deutsche Telekom, K+S, Deutsche Börse, Shell, BP, brewing giant AB Inbev, Deutsche Börse and Reckitt Benckiser – these days, numerous companies around the world are announcing that they want to buy back their own shares. The most important questions and answers that investors should consider.
Why do companies buy back shares at all?
First of all, a local company must always have such a step approved by its shareholders at a general meeting. This is usually within the framework of a so-called reserve decision, in which a maximum volume and term are set. Only then can shares be bought back – either with the help of commissioned investment banks via the stock exchange, i.e. the open market, or with a specially launched program that is aimed directly at the shareholders.
#Share #buybacks #companies #investors