Home
Ten Ways to Protect Your Investments and Identity Online
How Not to Overpay for Stocks when Investing Online
How Technical Analysts Interpret Patterns

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

blog comments powered by Disqus
Let Websites Read Stock Charts for You
Valuation Ratios Provide Insight into Stock Investment Value
How to Share Stock Ratings with Other Investors Online
How to Use the Dividend Discount Model
How to Buy Mutual Funds without a Broker