Microsoft announces $40 billion stock buyback.

[Fehm]

HANG ON, are we talking about bits of computers? or bits of websites/shares?

What ive understood is this:
Loads of people have shares in Yahoo, microsoft buy up yahoo, so it becomes microsoft and therefore more people want it cus its microsoft, but also.. they buy shares so that there arent as many.... and the demand is the same as it was in the first place... So people are willing to pay alot more per share..?/

OK... ****** explaination please

[Recursion]

Microsoft have sold shares (bits of the company) to people. They are now buying them back off people to make it so people have to pay more for the few shares still out on the market.