Market Cap5 Apr 2024 17:39
Fleccy. Hello, I wonder you could help me here. Vod's market cap is it's share price times the shares in issue. My question is, if vod buys back shares in a buy back scheme, will this mean as there are less shares in issue after the buy back, the market cap will fall unless the share price rises. If the market cap doesn't fall then it would seem to me that a share buy back is a one way upward bet as each share holder will own a larger slice of the company. It seems to me that after a share buy back the market cap should fall, but because each share will own a larger share of the company then it will balance out. I am all for buy backs if the managment think that is good thing, but it is good to fully understand how it all works. Thank's a lot Fleccy if you can help me on this one. Cheers & have good one.