TSX:AAR.UN - Post by User
Post by
AHybridofStreetandStocksmartson Sep 02, 2014 6:05pm
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Post# 22898881
A Company can choose to either use treasury or buy in the
A Company can choose to either use treasury or buy in the
open market as I mentioned in my note. Even if a company issues more shares instead of paying out in cash; that cash stays in the company and can be put to use. Investors can benefit from the discounted price which is usually 5% less given an average stock price for a certin time like 5 trading days or so. Dilution in this case is offset by the extra cash...
I had an investment that stayed under water for 3 years but paid monthly dividend that was reinvested; now I have 30% more shares and my average unit price is well below the current price.