Apple Announces Biggest Stock Buyback in History
This move places Apple as the second most valuable company globally worth $2.86 trillion.
Apple Inc. has stunned markets with its announcement of a historic share buyback program totaling $110 billion.[1]
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This move places Apple as the second most valuable company globally, worth $2.86 trillion, trailing only behind Microsoft, which boasts a market capitalization of $3 trillion. If Apple proceeds with its buyback plan as outlined, it will effectively own close to 4% of its own shares.
Share buybacks, also known as stock repurchases, are strategic financial maneuvers aimed at reducing the number of outstanding shares in the market. This process can be executed through on-market buybacks, conducted on stock exchanges, or off-market buybacks, which involve direct purchases from shareholders.
Companies often opt for share buybacks for various reasons, including utilizing excess cash, providing tax-efficient rewards to shareholders, consolidating control, and signaling to the market that their shares are undervalued.