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Normal-Course Issuer Bid |
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Normal-Course Issuer Bid The act of a publicly-traded company buying its own shares in order to cancel them. By definition, this reduces the number of shares outstanding and therefore increases the earnings per share. This usually results in an increased market value per share. Therefore, a company making an NCIB usually does so in order to increase its market value. Regulations govern the number of shares a company is allowed to buy back in an NCIB. See also: Share buyback. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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