What is the advantage of periodic share repurchases?

Answer by  xyz123 (99)

It reduces shares outstanding (returning capital to shareholders). It is tax advantaged (to the corporation) and the periodic nature reduces risk of mistiming repurchases.

Answer by  jon6 (488)

When a company repurchases shares, it reduces the total number of shares outstanding. This results in the remaining shares being worth more because there are fewer shares available. This also signals to the stock market that you are confident in the value of your company. This may result in an increase in share price also.

Answer by  timeismoney (994)

By purchasing shares of a stock on a regular,periodic basis, you "dollar cost average," meaning that you averageng the cost of your stock by sometimes buying when it is high and sometimes when it is low. This way, you avoid buying the stock just at its highest point.

Answer by  tamarawilhite (17883)

Share repurchases decrease the number of shares in circulation, increasing the value of the remaining shares. Shareholders also receive more dividends because profits are divided among fewer shares.

Answer by  barkley (951)

The advantage is you can dollar cost average, buying some shares at lower costs and some at higher costs. If you keep investing, over time this method is thought to be a good investment strategy. The down side is the record keeping is alot of work.