FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

Share Buy-Backs in Record Volumes

20 April 2022

Share buybacks are essentially when a company buys outstanding shares of its stock with its cash or borrowed funds. The buyback reduces the total number of outstanding shares that are available to the public and boosts its share price since there is less supply. It is often associated with a positive indicator and signals investor confidence in cash flow and revenue growth which often leads to stronger returns. Share buybacks have become a dominant theme of corporate payouts in the U.S.

More recently, US companies have been rushing to repurchase large volumes of shares to take advantage of stock market volatility and more importantly reassure investors as economic growth slows.  There has been a record number of share buybacks worth $319 billion according to Goldman Sachs data, and a rising number of companies are taking advantage of depressed share prices.

Record Share Buybacks

Advantages of Share buybacks

There have been numerous reports that have focused on firms’ decisions to implement share buybacks. However, here are some of the most cited reports according to Hsieh and Wang (2009) are the following:


There are various reasons why companies pursue buybacks, ranging from ownership structure, undervaluation, and boosting financial ratios. According to S&P Global, some interesting findings conclude that over a long-term investment period, share buyback portfolios generated positive excess return over their benchmark index. A good example is when looking at the share buyback index, which tracks the performance of the top 100 stocks that have the highest buyback ratios in the S&P 500.

Share buyback index, which tracks the performance of the top 100 stocks

Despite the strong evidence and positive relationship between share buybacks and price performance, there are some important questions to consider before investing, such as the following:

Top 5 companies- Share buybacks

*As of December 2021

Open a live account with MultiBank Group today and begin trading the top companies who have or are doing share buy-backs.




Penny Stocks: What Are They?
Penny Stocks: What Are They?

Locating penny stocks with buy ratings is getting more and more challenging. The markets become less adventurous as interest rates rise. That indicates that penny stocks, which are riskier by definition...

20 Sep 2022

Bitcoin and Ethereum: Inflation Brought Down The Prices
Bitcoin and Ethereum: Inflation Brought Down The Prices

Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level...

15 Sep 2022

Cooler USD & Stocks Higher Ahead of CPI
Cooler USD & Stocks Higher Ahead of CPI

USDIndex – Slips (108.00 tested) for a 5th straight day, lifting EUR & GBP. Fed Funds Futures back to 90% chance of 75 bp (third consecutive) hike...

14 Sep 2022

Copper’s Price: What’s happening?
Copper’s Price: What’s happening?

In this article, we will discuss what has happened to the price of copper. When your money loses some of its purchasing power, you stop caring about supply and demand...

14 Sep 2022

The Inflation Monster Strikes. Better One Small Fish Than An Empty Dish
The Inflation Monster Strikes. Better One Small Fish Than An Empty Dish

London Mayor Sadiq Khan says that millions of Britons won’t be able to afford heating or basic food this winter if things remain as they are now. The present state of affairs has no precedents in the past...

9 Sep 2022

After a recent selloff, Wall Street is expected to rise
After a recent selloff, Wall Street is expected to rise

Expectations that the Federal Reserve might lower interest rates to combat inflation. This idea did not have a chance because of the labor market data. Investors are concerned...

7 Sep 2022

Editors' Picks

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.