Buybacks at $46B a Month Dwarf Everything in U.S. Market (2015)

Re:Buybacks at $46B a Month Dwarf Everything in U.S. Market ... by phyalow on Monday April 04, 2016 @01:52AM (#11419680)

Number of shares doesn't matter, enterprise value does and it doesn't change. Your implying that there would be a further equity issuance which doesn't routinely happen on buybacks.

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Re:Buybacks at $46B a Month Dwarf Everything in U.S. Market ... by eru on Monday April 04, 2016 @08:54AM (#11421474)

Exactly. If number of shares would matter, share splits would matter.

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Re:Buybacks at $46B a Month Dwarf Everything in U.S. Market ... by JDDunn9 on Monday April 04, 2016 @09:45AM (#11421812)

Market cap = shares outstanding * share price.

Reducing shares increases the price (while keeping market cap the same). Share splits increases the shares outstanding and decreases the price. So... yes, shares outstanding does matter.

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Re:Buybacks at $46B a Month Dwarf Everything in U.S. Market ... by phyalow on Monday April 04, 2016 @09:53AM (#11421847)

Now you are confusing outstanding shares with market float. Shares repurchased become treasury stock and are now apart of equity.

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Re:Buybacks at $46B a Month Dwarf Everything in U.S. Market ... by JDDunn9 on Monday April 04, 2016 @10:18AM (#11422016)

Whether the company destroys the shares or retains them as treasury stock is irrelevant. Investors don't care if their share price went up by 10%, or if they effectively have 1.10 shares.

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