Posted On: 04/23/2014 6:20:46 PM
Post# of 17862
Hey Keeks,
I've been looking around for some clarity on that, and found that companies executing buybacks must do the following:
Manner of purchase: The issuer or affiliate must purchase all shares from a single broker or deal during a single day.
Timing: An issuer with an average trading volume less than $1 million per day or a public float value below $150 million is unable to trade within the last 30 minutes of trading. Companies with higher average-trading-volume or public float value can trade up until the last 10 minutes.
Price: The issuer must repurchase at a price that does not exceed the highest independent bid or the last transaction price quoted.
Volume: The issuer can't purchase more than 25% of the average daily volume.
Source: http://www.investopedia.com/terms/r/rule10b18.asp
I've been looking around for some clarity on that, and found that companies executing buybacks must do the following:
Manner of purchase: The issuer or affiliate must purchase all shares from a single broker or deal during a single day.
Timing: An issuer with an average trading volume less than $1 million per day or a public float value below $150 million is unable to trade within the last 30 minutes of trading. Companies with higher average-trading-volume or public float value can trade up until the last 10 minutes.
Price: The issuer must repurchase at a price that does not exceed the highest independent bid or the last transaction price quoted.
Volume: The issuer can't purchase more than 25% of the average daily volume.
Source: http://www.investopedia.com/terms/r/rule10b18.asp
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