Monday, July 19, 2010

HOW BUY BACK OF SHARE WORK

Mahesh Ji,
How this buy back of shares work? How can I ensure that my shares are bought back? Should I do any special things?- ask by Rajeev denial
1. when a company plan to reduce her share from market then company repurchase his share from market this process is called buy back of a share.
2. company buy back his share with 2 reasons first if company try to reduce supply of share in market ( when supply is low then it increase value of share) second reason that company try to eliminate threat of take over.
3. buy back of share is either from open market or from present shareholders.
4. if buy back is from general shareholders then company fix a buy back price of his share which normally higher to market price and sent a offer letter to shareholders that he/she tendered his shares against buy back price.
5. if offer letter not receive then one could download it from site of particular company/company share transfer agent/OR from http://sebi.gov.in/
KEY WORDS:- INTRA DAY TRADING COMMODITY TRADING CALL PUT OPTION FUTURE TRADING TIPS BUY SELL HOLD INDIA STOCK MARKET BSE NSE SHARE TIPS ONLINE TRADING

2 comments:

  1. Cant we decide whether to keep the share or sell it to the company?

    Does getting the offer letter mean that they will buy back the share for sure?

    ReplyDelete
  2. Dear Visitor,
    Would like to appreciate the effort of the webmaster for creating such a wonderful blog which is very helpful for the visitors.
    Would like to add few notes here like if we are trading in Share market say specially in NSE and BSE which are one of the most popular stock exchanges of the world then we need to take care of the few things like

    1. Always trade in limit
    2. Do not make tade on emotional basis
    3. Always try to get professional support before taking risk in stock market
    4. Rely on professional research rather than speculation.

    This is for sure if we follow above 4 points then we can always stay in good profit.


    Regards
    BIGPROFITBUZZ TEAM

    ReplyDelete

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