Shareholders who choose not to sell back their shares in a share buy-back are losing money because the company is only distributing value to the participating shareholders.

Question

Quizplus · Accepted Answer

Shareholders who choose not to participate in a share buy-back are not necessarily losing money as they retain their ownership percentage in the company, and the value of the remaining shares may increase as a result of the buy-back. However, participating shareholders receive a higher percentage ownership of the company, which may increase the value of their shares. Therefore, it is not accurate to say that those who choose not to sell back their shares are losing money.

Shareholders Who Choose Not to Sell Back Their Shares in a Share