News for hackers. Stuff that matters.

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

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.

[ Parent | on HN ]
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.
[ Parent | on HN ]
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.
[ Parent | on HN ]