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Own Shares Transaction: Understanding the Process and Implications

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Understanding the Transaction in Own Shares

Shell plc, one of the leading energy companies, has announced a transaction in its own shares as part of its share buy-back program. The program, previously announced in July 2023, involves on- and off-market limbs and is conducted in accordance with relevant regulations. Citigroup Global Markets Limited will make trading decisions independently during the program period. The on-market limb will be executed within predefined parameters, while the off-market limb will follow the approved off-market buyback contract. The program adheres to the Listing Rules and Market Abuse Regulation, as well as the UK MAR and EU MAR Delegated Regulation. Details of the individual trades made by Citigroup Global Markets Limited on behalf of the company can be found in the attachment. For further inquiries, contact the appropriate media channels provided.

Hot Take: The Impact of Share Buy-Back Programs on New Businesses

Shell plc's recent announcement of a transaction in its own shares as part of its share buy-back program could have significant implications for new businesses, particularly those in the energy sector.

Understanding Share Buy-Back Programs

Firstly, understanding share buy-back programs is crucial for new businesses. These programs, which involve a company purchasing its own shares, can affect the company's stock price and market perception. New businesses must be aware of these dynamics as they navigate their own growth and financing strategies.

Implications for Market Competition

Secondly, Shell's move could impact market competition. By buying back its own shares, Shell is potentially consolidating its market position, which could pose challenges for new entrants in the energy sector.
Regulatory Compliance
Finally, the announcement underscores the importance of regulatory compliance. Shell's program is conducted in accordance with various regulations, highlighting the need for businesses to stay abreast of and comply with relevant laws and regulations. In conclusion, while Shell's share buy-back program is a strategic move for the company, it also offers valuable insights for new businesses, particularly in terms of understanding financial strategies, navigating market competition, and ensuring regulatory compliance.
Story First Published at: https://financialpost.com/globe-newswire/transaction-in-own-shares-511
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