Home
Ten Ways to Protect Your Investments and Identity Online
What Is the Whisper Number in Investing?
How to Buy Mutual Funds without a Broker

Online Investors’ Ten Most Common Questions

If a company is buying its stock back, does that mean the stock is cheap?

Some investors think it’s the ultimate “buy” recommendation when a company says it’s planning to buy back its own stock. Stocks often rise after a company tells Wall Street it’s launching a stock-buyback program.

But investors should be skeptical of buybacks. For one thing, just because a company says it will buy back stock doesn’t mean it will. Academic studies show about a third of companies that say they will buy back stock never do.

  • Add a Comment
  • Print
  • Share

Recommends

Promoted Stories From Around The Web

COMMENTS »
blog comments powered by Disqus
How to Choose an Online Stock Screening Site
What to Look For in a Mutual Fund
What the Online Investor Needs to Know About Bonds
Drawbacks of Exchange-Traded Funds
The Risks of Initial Public Offerings