Dilution

Under a dilution of shares in a person with the loss of the capital increase (may). Each partner owns its own shares in the company, which has its own share in the share capital. If the nominal amount of capital is now sold, which is certain, not the nominal right of the managing director of the partner, but the share in the overall management of the share capital belongs. The level of participation can e.g. play a role in the majorities in the shareholders’ meeting, to be personal in the personal profit sharing based on the business share (see the property rights of the shareholders). In the event of an ordinary capital increase, the newly issued shares will be held by the already socially responsible shareholders, even if they keep their participation quotas. In the case of a nominal capital increase, which is about the ownership structure, which is not and is a dilution.

Example:

A company carries out a capital increase. New shares will be issued. At the same time, the number of all shares increases. The value of the company must now be cut into several parts. At the same time, every single part is worth less

Share Buyback

If a company announces a share buyback, this is almost always positive news for shareholders: the company signals that it believes that its own shares are a good investment. Other market participants must assume that the board knows more about the company’s prospects than they do, and that there are good reasons for optimism. So you also access: The share price rises. Even if the company makes a public buyback offer to its shareholders, the shareholders benefit: Such an offer is only attractive if the shareholders receive more money than if they were sold on the stock exchange. The company must therefore first offer a price that is above the current market price. In this way too, the value of the shares increases with the announcement of the share buyback. Shareholders who keep their shares also benefit from a higher share price. Because fewer shares are in circulation, there is usually a higher dividend. You can find out why in detail below.

Example:

A company announces to buy back $ 2 billion of its own shares. The company annuls the repurchased shares and the total number of shares decreases. The total value of the company needs to be divided into fewer pieces. Each share is therefore worth more.

 

Schreibe einen Kommentar

Deine E-Mail-Adresse wird nicht veröffentlicht. Erforderliche Felder sind mit * markiert.