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Originally Posted by CamaroMike
Makes sense. If its too dilluted then volatility is very slim so they buy back shares to increase the volatility? I think ford does this every few years as well to stay "competetive"
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Diluted is an EARNINGS PER SHARE ISSUE.... too many shares divided into the earnings.
Volatility is NOT something you want in any stock --- if you want volatility -- watch TESLA (TSLA) -- it's a friggin yo-yo.
Companies buy back their shares to REDUCE the number of shares available (the float)... and increase shareholder value. Many times companies do this because they think they're shares are undervalued. Sometimes they just can't figure out a better use for the cash on hand.