Ask Portfolio Management Expert

Accelerated Share Repurchase is a specific method through which corporations can again purchase outstanding shares of their stock. The accelerated share repurchase (ASR) is generally accomplished by the corporation buying shares of its stock from an investment bank. The investment bank rent the shares from clients or share lenders and sold them to the company. The shares are then returned back to the client through purchases in the open market, frequently purchased over a period that can vary from one day to several months. 

Accelerated share repurchases permit corporations to shift the risk of the stock buyback to the investment bank in response for a premium. The corporation is thus able to right away transfer a predetermined amount of money to the investment bank in response for its shares of stock. ASRs are frequently used to buy shares back at a quicker pace and decrease the amount of shares outstanding right away.

 

Portfolio Management, Finance

  • Category:- Portfolio Management
  • Reference No.:- M9505171

Have any Question?


Related Questions in Portfolio Management

Assignmentcompletion of portfolio projectthis assignment

Assignment Completion of Portfolio Project This assignment requires you to compile Parts 1, 2, and 3 into one document, which will be your final report on the global aspects of your selected company. Do not just copy the ...

Background information abc superannuation fundabc

Background information: ABC Superannuation Fund ABC Superannuation Fund (ABC) is a scheme that was originally only available to state public servants. It has two parts: - a defined benefit (DB) scheme - a defined contrib ...

Read the following case study on sappi southern africa and

Read the following case study on Sappi Southern Africa and answer the questions at the end of the case: Group Assignment Questions 1. Sappi presents a good example of the dangers of excessive reliance on one screening te ...

Question - you are a portfolio manager and you want to

Question - You are a portfolio manager, and you want to invest in an asset having s = 40%. You want to create a put on the investment so that at the end of the year you have losses no greater than 5%. Since there is no p ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As