Over recent years we have seen a surge in corporate buybacks as the preferred way to deliver value to shareholders. As someone who has spent years studying institutional trading and market structure, a buyback sounds like the perfect order; they are long running, passive trades with huge broker discretion. Yet for some reason, they often appear to be traded in a very clumsy fashion. In this paper we review some recent buybacks and see how much a poorly executed buyback can really cost the corporate issuer and their shareholders.
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