07-25-2013, 08:13 PM
Acer wrote:
Anyone care to explain to an investment n00b why Apple would do this?
It's a way to indirectly return some of the cash to the shareholders. By reducing the total number of shares, each remaining share owns a larger portion of the company. So the earnings per share should increase and the stock should be worth more if all other factors remained constant. That's the math behind it at least.