Deciphering share buybacks
Newcomers like myself must have perused through all the market events on SGX and one of the most common title that comes up is either Company Share Buybacks or Disclosure of change in interest of Director . Today we are going to uncover how we can use this information to our advantage! Company Share Buyback occurs when the issuing company purchases its own stock at the current market prices using their company funds while Disclosure of change in interest of Director occurs when members of the board of directors purchases the stock of the company in their own personal capacity. Why Company Share Buybacks occur One might wonder why a company would use cash to purchase their own shares when they were issued for the purpose of raising capital for growth in the first place. Generally , companies purchase their shares on the free market to consolidate their ownership as they feel that their shares are undervalued at the current market prices . This is done for...