Open Question
Share repurchase question. If it's reported that company XYZ bought back X
amount of shares, is that net of share dilution caused by stock options
exercised?
In other words, if company XYZ buys back 100,000 shares but exercises options
worth 90,000, isn't the net effect just 10,000?
Page 1 of 1
You are correct. Quite often buybacks are just enough to cover the options being
exercised ... so the share float isn't really being reduced by a significant
amount.
That's not necessarily a bad thing. Options can be an economical way for growing
companies to reward employees. And the company is looking out for shareholders
if they keep the dilution to a minimum.
Rate Now:
Average Rating: 0.00 / 0
Page 1 of 1