Glencore crude trader leaves firm after seven years
Over roughly the last 12 months, Glencore’s head of crude trading in the US and at least two other traders have departed.
I own BHP Billiton shares and I have heard there will be a buy-back. What is it? Why are they doing it? And if people want cash rather than shares why don’t they just sell them when they like? Australia’s retail investor portal answers the questions:
BHP has said it’s making an off-market buy-back for around $5 billion. This means the company buys shares from shareholders and this reduces the number on the market. Those who hang onto the shares have a bigger chunk of the company when the shares are bought.
Why do companies do this? It can mean surplus capital is disposed of by the company. BHP has been trying to buy big companies but has been foiled by regulators around the world. The action can also pump up the share price. There can be other reasons for a buy-back, which are not made clear to the market but serve to help the company down the track.
The key question for a shareholder has to be does this suit me and my personal circumstances? Experts who understand the tax treatment that goes with this buy-back argue that some taxpayers have a big incentive to say yes but others are not in the same boat. This is where a good financial adviser can be a big help and/or a stockbroker who understands your personal circumstances.
