Before we start with the crux lets us understand whats is buyback and why companies do a buyback. When a company earns a hefty profit and willing to pay their shareholders from the part of the earnings they can distribute the profit via Dividends and Buyback of shares. There is a calculation methodology of taxes on dividend and buyback which is a long go to understand and will be writing in some other day. So now let's understand in the layman terms what is dividend and Buyback means to shareholders.
Buyback: A lucrative and a safe bet?
Buyback: A lucrative and a safe bet?
Buyback: A lucrative and a safe bet?
Before we start with the crux lets us understand whats is buyback and why companies do a buyback. When a company earns a hefty profit and willing to pay their shareholders from the part of the earnings they can distribute the profit via Dividends and Buyback of shares. There is a calculation methodology of taxes on dividend and buyback which is a long go to understand and will be writing in some other day. So now let's understand in the layman terms what is dividend and Buyback means to shareholders.