Hello guys! I'm new here, and have a question for you. I wonder if you know why a company buys its equity. How is this done, and what are the advantages of doing so? Is this common practice? What do you think about this practice? Thanks for your comments. Cheers people.
Hi. Usually if a company is getting on and is successful, the sponsor want to control it to the max so they can have access to as large a part of the profits as possible. So the directors want to by their own equity. When the business is new, you can get shares for cheaper, and later on it grows.
