Getting a bit technical in here isn't it? Meerkat where are you when we need you? OK - I'll drag it down to layperson speak in his absence then: My cunning plan seems to be working. I have asked the market to turn the FTSE volume down and of course as you can see LLOY is following suit as it (nearly) always does. Global liquidity is under stress, military activities ramping up sporadically, the run up to the GE and of course LLOY going ex divi next week all point to a downward spike for atleast the next few business days. Still looking at around 78.5p as I mentioned previously. Get ready with the float - floaters! Weather: calm, 10km viz, 12 degrees. SS3. A pleasant spring day methinks.
Your post made me chuckle....so early in the morning! Glad your doing well in investing, but then who isn't right now? I assume a misspelling when you say baking meaning banker?...I like doughnuts.
Calisto: I ask questions, many questions for good or bad do my best to understand motives and actions of others and who benefits if any. But it strikes me you don't fully understand the negative side to buybacks or you choice to ignore them. Whichever way you choose is up to you, but please don't refer to me as a anti capitalist on a moral crusade...ok?...thanks. I'm fully behind the shareholder and support the dividend route which everyone winged and shouted for, and finally received. Any decisions which management make supported if somewhat unwittingly by shareholders which enriches top management and not the investor - then right I'll get upset. There are risks in buybacks, also assumptions, for example the SP increases...maybe, no guarantee. There's been a buyback culture for years worldwide.....ask yourself why.
Good luck with the school fees, and watch the leverage.
Though investors may benefit from a share price increase, adding treasury stock will - at least in the short-term - actually weaken the company’s balance sheet. To grasp why this is the case, consider the basic accounting equation: Assets - Liabilities = Stockholder’s Equity. The organization has to pay for its own stock with an asset (cash), thereby reducing its equity by an equivalent amount.
Treasury shares are essentially the same as unissued capital and no one advocates classifying unissued share capital as an asset on the balance sheet, as an asset should have probable future economic benefits. Treasury shares simply reduce ordinary share capital.
DEFINITION OF 'TREASURY STOCK (TREASURY SHARES)' The portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations, This can be advantageous to shareholders because it lowers the number of shares outstanding.
The Buyback Regulations 2013, which came into force on 30 April 2013, relaxed certain statutory requirements that would otherwise apply when undertaking a share buyback, in particular, for buybacks for the purposes of, or under, an employee share scheme. A main change under the Buyback Regulations 2013 is that private companies are now permitted to hold shares in treasury (regardless of whether bought back in connection with an employee share scheme). Previously, only qualifying shares could be held in treasury. Qualifying shares were, broadly, shares in a listed company or those traded on AIM or a regulated market.
I'm sure I read somewhere that it's possible to buy back shares and "hold in Treasury". Shares are not then subject to voting or dividends etc, but can be used as capital, but I'm not sure of the details of this.
Does anyone know any more info or indeed if the above is correct?
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