INVESTMENT ALTERNATIVES AND SHAREHOLDER VALUE

Investment Alternatives and Shareholder Value

Investment Alternatives and Shareholder Value

Introduction Investment alternatives are as following .Share buyback is also known as stock repurchase; it includes the repurchasing of its own stock by a company. There are two uses of the profits generated by the companies; the First use is that some portion of profits is paid again to shareholders in shape of dividends. Then the stockholder's equity, are reserved inside the company and it is then used for investing in the future. But if companies can reinvest majority of the retained earnings profitably, then they may do so. ...