Halting the Share Buybacks
Posted by 3DCAD Editor
Public CAD vendors commonly spent millions repurchasing their own shares. Daniel Gross explains the two reasons for doing so: 1. Repurchases would compensate for the dilution created when executives and employees exercised stock options. 2. By reducing the number of shares outstanding, repurchases would make profits look more impressive. (One dollar of earnings spread over 10 shares, is 10 cents per share. But $1 of earnings over nine shares is 11.1 cents per share-an 11 percent increase. A strategy...
Comments
Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!
You must be logged in to post a comment.