Originally Posted by
narayan
What does buy back means?
buy back of shares represents that the company is going to reduce the floating stock quanity in open market by buying back the shares from public holdings, and cancelling the same, it will help to increase the Book value, EPS and result will go to appreciation of market value of the script in short term.
Buy back is of two types
1)
From shareholders: In this case company approach the original share holder to offer the shares at the price fixed under board meeting,
2)
Open market : In this case company deputes some broker or agent to accumulate the shares for him at the price fixed or lower from markdet transactions.