Impact of Buyback on share price: A study with reference to Nifty 50 stock
This research paper studies the buyback of shares and its impact on pricing of stock. A share buyback or stock repurchase happens when a company purchases its own shares from the stock market. This paper also focuses on government policies regarding buyback of shares and short term impact on share values. Government policy related to the stock market and investment mostly in favor of investors. Indian economy starts to boom with support of domestic investors increasing continuously their investment and also focus on all segments. Share market price fluctuates with days to days like up and down. When a company buys back its shares, there are fewer shares available in the market. A buyback can signal that the company believes its stock is undervalued. This perceived confidence can attract investors, increasing demand and potentially boosting the share price. Buybacks can enhance financial ratios like return on equity (ROE) because the company's equity is reduced by the buyback amount. Buybacks can enhance financial ratios like return on equity (ROE) because the company's equity is reduced by the buyback amount.
Institutions
- Dr. Vitthalrao Vikhe Patil Foundation’s Medical College (IN)
Publication Details
- Journal
- Zenodo (CERN European Organization for Nuclear Research)
- Published
- 2024-08-31
- DOI
- https://doi.org/10.5281/zenodo.13762699
- Primary Topic
- Diverse Scientific Research Studies
- Type
- article
- Field-Weighted Citation Impact
- 0.00