abhishreshthaa
Abhijeet S
BUY BACK OF SHARES
Buy back of Shares is described as a procedure that enables a company to go back to its shareholders and offers to purchase from them the shares they hold, which was earlier issued by the company.
Buy back of Shares is the reverse process of raising capital.
Buy back of Shares is a financial tool for financial re-engineering.
MOTIVE FOR BUY BACK OF SHARES:
RESOURCE OF BUY BACK:
Buy back of Shares is described as a procedure that enables a company to go back to its shareholders and offers to purchase from them the shares they hold, which was earlier issued by the company.
Buy back of Shares is the reverse process of raising capital.
Buy back of Shares is a financial tool for financial re-engineering.
MOTIVE FOR BUY BACK OF SHARES:
- Existence of excess profits and lack of Investment options
- To Increase Shareholders Value
- To enable promoters to hike their stake in the company without expending any funds of their own
- To prevent hostile takeovers
- To substitute share repurchases for cash dividend payout
- To prevent dilution of earnings
RESOURCE OF BUY BACK:
- Free reserves
- securities premium account
- Proceeds of any shares or other specified securities.