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	<title>Indian Share Market &#187; share buyback</title>
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	<description>Free Stock Market Trading Tips India</description>
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		<title>Stock buyback and what does it signify?</title>
		<link>http://indiansharemarket.in/stock-buyback-and-what-does-it-signify/</link>
		<comments>http://indiansharemarket.in/stock-buyback-and-what-does-it-signify/#comments</comments>
		<pubDate>Sat, 04 Jul 2009 03:25:55 +0000</pubDate>
		<dc:creator>Share Market Tips India</dc:creator>
				<category><![CDATA[Learning Center]]></category>
		<category><![CDATA[benefit of a stock buyback]]></category>
		<category><![CDATA[benefits of a stock buyback]]></category>
		<category><![CDATA[Learn Stock Market Basics]]></category>
		<category><![CDATA[meaning of stock buyback]]></category>
		<category><![CDATA[share buyback]]></category>
		<category><![CDATA[stock buyback]]></category>

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		<description><![CDATA[&#160;&#160;When the stock market is sluggish or it is passing through a bear run, many companies announce stock buybacks. Although this practice is pretty common, the layman investor does not give a second thought to these announcements during trade. There is a lot of potential involved and you should definitely not miss this opportunity. What is the meaning of stock buyback? When a company buys its own stock in the stock market it is considered as a stock buyback and the shares that are taken are re-titled as treasury stocks and it becomes an asset to the company.. What is the benefit of a stock buyback? First and foremost there is an increase in the shareholder value i.e. the EPS ( Earnings per share) increases and the outstanding share decreases. Hence the company will stand to profit. If the EPS increases, it will show a result that the stock is undervalued and this will alert the investors. Investors will invest on these shares and the price of the stock moves upwards. There is an increased float because the number of outstanding shares decreases and the shares that are available signify a larger percent of the float. If at this time, [...]]]></description>
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