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Stock buybacks, now propping up the market, could become a victim of rising interest rates. Do share buybacks reduce market cap? The Impact on Earnings Per Share (EPS) Assuming that the price-earnings (P/E) multiple at which the stock trades is unchanged, the buyback should eventually result in a higher shareRead More →

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The effect of a buyback is to reduce the number of outstanding shares on the market, which increases the ownership stake of the stakeholders. A company might buyback shares because it believes the market has discounted its shares too steeply, to invest in itself, or to improve its financial ratios.Read More →