2023-05-26 11:56:00
More and more companies are buying back their own shares on the stock exchange, and for a variety of reasons. But what can such a transaction bring to investors?
The global economy is facing major upheavals: Inflation remains at a high level, as do interest rates. The developments leave clear traces, for example in the real estate industry.
Construction activity is becoming more expensive and is therefore declining. The consequences are also visible in the banking sector, with many financial institutions taking a more restrictive approach to lending. In view of the persistently difficult environment, numerous companies are reluctant to make new investments. Some companies use part of their financial resources to buy back their own shares instead. Of course, there are also other reasons for share buybacks, for example to ward off a hostile takeover as far as possible.
But no matter what the capital measure is for, it can have serious consequences:
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