This will automatically increase your ownership to 20 % supposing the total
number of the outstanding shares remains at 500,000 units.
Not exact matches
Repurchases reduce the
number of shares outstanding, giving each
remaining shareholder a bigger
share of future earnings — and thus making price appreciation more likely.
In a standard stock split, a company increases its
number of outstanding shares while adjusting the
share price so that its market capitalization
remains the same.
Although the
number of outstanding shares has doubled, the market capitalization
remains unchanged at $ 10 * 2,000 = $ 20,000.
To date, 1,735,000
shares remain to be repurchased on the program, representing over 4 %
of the total
number of outstanding shares.
The net impact
of a
share repurchase is to reduce the
number of outstanding shares, which boosts the much - watched earnings - per -
share metric even if overall net income
remains flat.