1. After the repurchase, the earnings per share increase, and the acquirer needs to pay more funds to improve the efficiency of capital use, improve the capital structure and maintain the company image. Stock repurchase refers to the repurchase of shares traded in the secondary market by listed companies in cash or other ways, and the number of shares circulating after repurchase is reduced. Therefore, repurchase is good news for listed companies. Therefore, the impact on the stock market should be analyzed from two aspects: short-term impact and long-term impact: corporate repurchase will promote the stock price to rise. When the company has abundant cash and other reasons, it will choose to buy back its shares, also known as share repurchase, which will promote the rise of the company's share price. Usually, this can be considered as good news, because the company is optimistic about its future development, so it is willing to exchange more cash for its own shares. Stock repurchase means that listed companies buy back cash through secondary market transactions or other means, and the number of shares in circulation decreases after repurchase. Therefore, repurchase is good news for listed companies and may stimulate short-term stock price rise; Secondly, repurchase is a situation in which listed companies convey to the market that their share prices are undervalued.
2. Therefore, although the share price fell briefly after the repurchase news was released, in the long run, it shows that the company has sufficient cash flow, which will stimulate the share price to rise in the long run; Finally, stock repurchase can effectively protect the investment value of listed companies from being underestimated. When the company's share price is seriously underestimated relative to the company's net assets or even cash assets, it sends a wrong signal to the market that is not conducive to the company's development, and it is necessary for the company to take necessary measures. Stock repurchase can transmit the company's dissatisfaction with the serious decline in stock price to the market, and can reverse the current situation that the stock price has fallen too fast. Once the repurchase is implemented, it will improve the company's net assets per share, profitability and other financial indicators, thus enhancing the company's investment value. Enlarging this significance, the significance of stock repurchase to the whole stock market lies in that it can avoid the phenomenon that the investment value of listed companies has been generally underestimated for a long time, which is of great significance to the stability of the stock market at this stage.