Management buyout

The people running a company buying its shares themselves

In detail

Executives raise money and buy the company's own shares, usually taking it off the exchange. It is chosen when they want to work on long-term change away from quarterly scrutiny. If the price offered looks too low, existing shareholders often object.

Example

Management offers $1,000 a share for a company whose stock trades at $800.

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.