Question

hi expert Give me 1 examples of successful buybacks and 1 examples of failures from Corporate America. and explain Why did it happen please? thanks

Answer 1

Example of successful buyback will be in 2014, Apple had announced its earnings and the earning did not meet the expectation of the market and share slumped almost 11% and the company had announced buy back and it bought back the shares, and since then the company has been on a tremendous bull run and it has multi folded returns for its shareholders.

Example of unsuccessful buyback will be Bank of America had bought back its shares around 2006 to 2007 for almost 18 billion dollars and it had crashed in 2008 to the extent of 60% from the top, so it was a large wipe out of capital and hence it is categorised under bad buybacks.