Share buy-back : a proposed framework for Singapore.

• Main Authors: Ong, Kevin Kian Hong., Tan, Lawrence Kok Keng.
• Other Authors: Nanyang Business School
• Format: Theses and Dissertations
• Language: English
• Published: 2011
• Subjects: DRNTU::Business::Finance::Equity
• Online Access: http://hdl.handle.net/10356/42692
• Institution: Nanyang Technological University

Share Buy Back (SBB) is a concept started in the USA. Amongst other reasons, one of the main motivation behind the scheme is to enable companies to buy back their own shares when their share price has been irrationally driven to a low level. Management buys its own shares back because they themselves see value in their own stocks and in the process send a strong signal to the market. Presently, SBB are implemented in the major financial centres of the world including the United States, United Kingdom, Netherlands (including other European bourses), Australia, Hong Kong, Japan and more recently, Malaysia. Generally while the concept is the same, they vary in terms of regulation and implementation. In the current financial turmoil, some benefits of SBB have been noted in stabilising countries stock markets.