Paytm to Buy Back $103 Million in Stock

The video discusses the controversy surrounding Paytm's decision to repurchase shares despite being a loss-making company. It highlights the concerns raised due to Paytm's recent IPO and the competitive fintech market, especially with Reliance Industries entering the scene. The buyback proposal led to a rise in Paytm's share price, attributed to reduced outstanding shares and perceived company strength. Analysts speculate that the buyback could counter potential large share sales post-IPO lock-in period.

Why is Paytm's decision to repurchase shares controversial?

• Because it has no spare cash.

• Because it is expanding into new markets.

• Because it recently raised funds through an IPO.

• Because it is a profit-making company.

What major change is Reliance Industries planning in the fintech sector?

• Exiting the fintech market.

• Reorganizing and listing its financial services.

• Launching a new payment app.

• Acquiring Paytm.

What was one technical reason for the rise in Paytm's share price after the buyback announcement?

• Introduction of new products.

• Decrease in company profits.

• Improvement in EPS and financial ratios.

• Increase in the number of outstanding shares.

How did investors perceive Paytm's buyback announcement?

• As a move to exit the market.

• As a sign of financial weakness.

• As a strategy to increase debt.

• As a statement of strength and improved metrics.

What concern did the buyback address regarding pre-IPO investors?

• They would leave the company.

• They would sell large amounts of shares.

• Their shares would increase in value.

• They would invest more in Paytm.