Question

Waht is meant by buyback of shares? What are its effects? Isi t really beneficial

Answer 1

Generally, a share buyback is good news for that company's shareholders. It means that the company's management thinks that the prices at which the stock is trading are too low. Sounds like your company intends to take some of its cash on hand (or borrow some money) and buy back some of its shares on the open market. there are no guarantees, but when companies do this, they usually effectively place a floor under the price of the stock - if you thought the company was willing to buy at $20, why would you sell for $19? Good luck...

YES IT IS BENEFICIAL