- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Is a company buying back its stock not insider trading?
Posted on 12/12/12 at 9:25 am
Posted on 12/12/12 at 9:25 am
Obviously they should be allowed to practically do this... but humor me. What mechanisms/exemptions do they get from this? Obviously they are more totally aware of the companies pipelines and strengths/weaknesses... because they are the company.
Or am I way off base?
Or am I way off base?
2
Posted on 12/12/12 at 9:37 am to Swoopin
I would say that there would be more insider trading complications with the issuance of stock than with buybacks.
Small scale buybacks are almost never an issue. If it's a large scale buyback and the company has one or two large shareholders (>20%), I would say that it would be an issue, as those shareholders would be receiving a large benefit from "insider trading". If the ownership is sufficiently diluted, it is just the company returning capital to shareholders.
Small scale buybacks are almost never an issue. If it's a large scale buyback and the company has one or two large shareholders (>20%), I would say that it would be an issue, as those shareholders would be receiving a large benefit from "insider trading". If the ownership is sufficiently diluted, it is just the company returning capital to shareholders.
Posted on 12/12/12 at 9:40 am to Swoopin
It's my understanding that the buy backs are not considered insider trading and are legal because the companies announce in advance of the buy backs that they plan on doing so.
So the information about the buy backs is publicly available.
So the information about the buy backs is publicly available.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News