Q: Hi KC/Peter, Since it is a common practice for companies to buy-back shares, is it also a common practice for companies to sell the treasury shares back into the open-market? If yes, why do they do so and how would we know? Once again, thanks !
A: Company buy back shares are more often than company selling their treasury shares. This is because only company that have bought back shares earlier can sell their treasury shares.
When they sell their treasury shares in the open market, they are raising capital from the public by giving out shares.
Each time they sell their treasury shares, they have to annouce it in bursamalaysia’s website. One example is: http://www.bursamalaysia.com/market/listed-companies/company-announcements/3945573 , under the category “Share Buyback”, subheading “Notice of Resale/Cancellation of Treasury Shares”.
Let me know should you need further explaination on it.
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