Why do EPS increase when Company buy back shares

This forum is created to discuss everything about Investing, from investment principles, to theories, concepts, strategies to investment jargons to provide a easy reference for everyone

Moderators: alvin, learner, Dennis Ng

Post Reply
Dennis Ng
Site Admin
Posts: 9781
Joined: Tue Nov 29, 2005 7:16 am
Location: Singapore
Contact:
Contact Dennis Ng

Post by Dennis Ng »

Dear Andrew,

when a company buy back shares, the shares bought back are actually cancelled. So, the total number of shares are reduced. This is the reason why EPS is increased when a company do a share buyback.

Hope that clarifies.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Top
Post Reply

Return to “All about Investing”