Plus I have seen company buy back their shares so shares get reduce and then they split their shares in next 2 years so in other words they increase their shares indirectly. Is this normal.
One example currently that Royal Bank buying back their shares usually they buy back when they are cheap on valuation since they are not cheap on valuation are they planning to split their shares.
Thanks for the great service
Share buybacks reduce the number of shares outstanding and, as a result, increase per share earnings leverage (income divided by fewer shares). Also, a share buyback is the signal to the market that the company may have too much capital and run by a solid management a team that knows how to take advantage when the share price is cheap (at least in their view). For shareholders, dividends are taxed but reducing the number of shares is not (to them) so more capital can compound at the company.
Split shares do not affect EPS, share splits only reduce the nominal share price and, as a result, increases liquidity to retail investors. Share splits do not offset any effect from share buybacks (share issuance does). For companies like RY, if shares are not cheap, companies would tend to reinvest those earnings, raise dividends, and pay special dividends moreso than do buybacks.