Plus500 Continues Share Buyback Program
- The broker spent just under £500,000 on its own shares this week
Retail broker Plus500 continued with its pre-planned share buyback on Thursday, with the details of the transactions released by the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term news service.
In total, the retail trading firm purchased 67,745 ordinary shares on the London Stock Exchange. Those transactions were carried out via Credit Suisse Securities.
The broker paid a high of 757.20 pence for some shares and a low of 709.60 pence for some others. On average, the broker spent 738.01 pence per share.
That being the case, Plus500 spent just under £499,964 ($610,206) on its buyback program.
The market maker now holds a total of 1,789,283 ordinary shares. Those are stored in the group's treasury.
Boosting confidence
News of a buyback program was first announced last week. In its half-year financial report, Plus500 said that it would be committing $50 million of its cash reserves to buy back stock.
That announcement came on the heels of a poor set of half-year financial results for the retail broker.
Revenues were down by 68 percent compared to the first half of 2018 and by 42 percent compared to the second half.
To fair to the firm, there were some unique factors at play that led to this dramatic decline.
Firstly, its performance in the first half of 2018 was driven massively by a boom in cryptocurrency trading, which hasn't been replicated since.
In August of last year, regulatory changes were also introduced by the European Securities and Markets Authority that had a negative impact on the group's operations.
That impact was compounded by a prolonged period of low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term that began in the final months of 2018 and continued into the first few months of this year.
Retail broker Plus500 continued with its pre-planned share buyback on Thursday, with the details of the transactions released by the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term news service.
In total, the retail trading firm purchased 67,745 ordinary shares on the London Stock Exchange. Those transactions were carried out via Credit Suisse Securities.
The broker paid a high of 757.20 pence for some shares and a low of 709.60 pence for some others. On average, the broker spent 738.01 pence per share.
That being the case, Plus500 spent just under £499,964 ($610,206) on its buyback program.
The market maker now holds a total of 1,789,283 ordinary shares. Those are stored in the group's treasury.
Boosting confidence
News of a buyback program was first announced last week. In its half-year financial report, Plus500 said that it would be committing $50 million of its cash reserves to buy back stock.
That announcement came on the heels of a poor set of half-year financial results for the retail broker.
Revenues were down by 68 percent compared to the first half of 2018 and by 42 percent compared to the second half.
To fair to the firm, there were some unique factors at play that led to this dramatic decline.
Firstly, its performance in the first half of 2018 was driven massively by a boom in cryptocurrency trading, which hasn't been replicated since.
In August of last year, regulatory changes were also introduced by the European Securities and Markets Authority that had a negative impact on the group's operations.
That impact was compounded by a prolonged period of low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term that began in the final months of 2018 and continued into the first few months of this year.