How can a company reduce their share total without using a Reverse Split?
Posted by kermit42 on :
The company can buy them back and retire them. BKMP is in the process of doing that right now.
Posted by A.J. on :
Does that usually mean the stock price will rise with buy backs? Is this a good thing?
Posted by T e x on :
quote:Originally posted by kermit42: The company can buy them back and retire them. BKMP is in the process of doing that right now.
a genuine buy-back--if meaningful to float proportion--should definitely help: supply v demand...simple
whether BKMP is actually doing so....eh--who really knows?
Posted by Relentless Despot on :
You won't see a real buyback on the pinksheets.. It's all a game to get more people to buy shares.. It takes money to buyback shares.. these companies are on the pinks because they lack money.. therefore... no buyback is possible. Reverse split is the only way pinks reduce their shares.. usually followed directly by issuing more shares.
Posted by imakmony2005 on :
usually followed -KEY WORDs THERE
Posted by The Bigfoot on :
Oh they'll do a buyback...and then they will release just as many shares as they bought once the pps rises and fill the coffers.