RE: Buy Back26 Sep 2017 16:33
Hi Ftsemajor and others, thank you for the replies.
I now understand the theory for why the price might change, but the theory doesnt quite feel substantial enough for me. If the theory were true, the price would change in proportion to the number of shares bought, which it hasn't as you pointed out in your other post.
The price of the share is determined on what the last trades were, not on the number of shares in existence and wether that number varies. It sounds more like the share price rises because of the theory, rather than anything else.
The accounting reasons also don't really stack up to me (although Im not an accountant), as the company is not performing any better than before it purchased shares. All they are doing is writing off a large sum of cash and hoping it is returned to the investor through market sentiment.
Funny old world.