Investing- Done before but worth repeating

[Malibook]

Sure, so redo the math with 5% instead of 50%, the numbers aren't as clean, which is why I did the math with 50% but you should be able to comprehend the point.

A 5% buyback can be executed cleanly if it's done over a period of time and with limit prices and in that case the math works out exactly.

The market is dynamic and your simplistic math is not a basis with which to formulate what a share will be worth.

Reducing the float by 5% is not necessarily going to directly translate into a corresponding taxable gain equivalent to a dividend.

Quite often the float still gets bigger as the buyback is not enough to offset the new shares resulting from exercised options.

 

[Malibook]

With counter-examples, that's the only way I'll accept. I won't take your word for it.

It's possible that the accumulation of 50% of outstanding shares on the open market would not have any effect on the share price but it is extremely unlikely.

 

[nottyboi]

If everyone made a million only in their own city, everyone would be rich.

Gyaos Baltar

If everyone was rich, no one would be rich.