NAB 4.05% $29.47 national australia bank limited

Should Buy Backs be Banned???

  1. 320 Posts.
    Hi Guys,

    I have just been discussing on market buy backs with some people. We have decided that for various reasons they should not be allowed to continue in current form. I am using NAB as a example.

    1. Market manipulation - at times the buyback has constituted upwards of 25% of the days volume. Surely this hinders a fair and reasonable market.

    2. Price Manipulation - A large scale buy back must effect the true market price. Surely this hinders a fair and reasonable market.

    3. Shareholder responabilities - Supporting the price by buy back cannot be good for shareholders. The company is paying too much for the shares.

    4. Broker behaviour - It is in the best interests of the buy back broker for the price to be higher as it gives them a higher maximum price.

    5. Broker Behaviour - the buy back broker should only be able to bid for stock. They should not be able to "hit the offer". Surely this hinders a fair and reasonable market.

    I am interested in the thoughts of others. Remember that NAB is an example so this is not a bank bashing thread.

watchlist Created with Sketch. Add NAB (ASX) to my watchlist
(20min delay)
Mkt cap ! $97.50B
Open High Low Value Volume
$29.56 $29.76 $29.40 $53.31M 1.803M

Buyers (Bids)

No. Vol. Price($)
5 636 $29.46

Sellers (Offers)

Price($) Vol. No.
$29.47 190 2
View Market Depth
Last trade - 10.24am 09/08/2022 (20 minute delay) ?
-1.245 ( 4.14 %)
Open High Low Volume
$29.57 $29.76 $29.37 355539
Last updated 10.44am 09/08/2022 (live) ?
NAB (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.