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14 votes
Explain five reasons that may cause a company to redeem its own shares ​

User Suny
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1 Answer

27 votes
27 votes
- Companies buyback shares for a variety of reasons, including firm consolidation, increased equity value, and to appear more financially appealing.


-The disadvantage of buybacks is that they are frequently financed with debt, putting a burden on cash flow.


-Stock repurchases can have a modestly favorable impact on the economy as a whole.
User Forhadul Islam
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