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What may occur here?

If a major shareholder desires to sell a large number of shares but the market for the shares is not sufficiently liquid to sustain such a large sale without severely affecting the price.

Asked by Cpdude, Last updated: Apr 05, 2024

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e.Ronald

e.Ronald

e.Ronald
E.Ronald

Answered Jan 03, 2018

When do you sell a share of stock? Well, if you lose 10 per cent of your stock investment, it’s a good idea. You usually buy stock when it is cheap. Has something changed? Maybe you want to rebalance your portfolio? There’s a term for buying back shares if you are a company. A targeted repurchase is a term used in the stock market exchange for stopping a hostile takeover.

By buying back its own stock at an above stock price. In 2002, KBF Pollution Management, Inc. which was a recycling services provider offered to repurchase its stock. In other words a targeted repurchase may occur if a major shareholder desires to sell a large number of shares but the market for the shares is not sufficiently liquid to sustain such a large sale without severely affecting the price.

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John Smith

John Smith

John Smith
John Smith

Answered Feb 24, 2017

D
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