RE: Share buy back23 Apr 2026 09:40
Good morning Lending, the answer is no it doesn't work that way.
If the company buys back ten percent of their shares and keep up to ten percent in treasury, then the shares still exist although shares in treasury don't attract dividends.
If the company buys back ten percent of their shares and cancels them then the NAV per share increases, but because you expended the cash within the company to buy them, then you have lost the cash and cancelled the shares, which means the market capitalism doesn't change immediately, but in theory the share price will slowly rise, because you have less dividends to pay out, and either you can pay down debt, increase dividends or reinvest in the business.