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A comment on When CEOs’ Equity Is About to Vest, They Cut Investment to Boost the Stock Price. Parent comment

Re:When CEOs’ Equity Is About to Vest, They Cut Investment t... by JumpCrisscross on Friday March 02, 2018 @02:53PM (#16505065)
> In a perfect market, the market value of the company will go down when company buys back stock

Consider a company worth $100 with ten shares of stock with $10 of cash on their balance sheet. Each share is worth $10. They company uses the $10 to buy back one share of stock. The company is now worth $90 and has 9 shares outstanding. Each share is still worth $10.

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Re:When CEOs’ Equity Is About to Vest, They Cut Investment t... by arcticfox on Friday March 02, 2018 @03:11PM (#16505250)
Right, it depends whether "market value" is referring to share price (your example) or market cap (which indeed should go down).
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Re:When CEOs’ Equity Is About to Vest, They Cut Investment t... by adamlett on Friday March 02, 2018 @04:30PM (#16505900)
Yes, I was referring to market cap.
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