[andmarios]

It can be both at the same time. By buying out your stock, you alter the company's assets, but the price of the stock remains the same since you still have the same number of stocks issued. You just replaced your money assets with stock assets.

Once you cancel the stocks you bought back, the rest of the shares will hold a more significant percentage of the company and increase in value.

But this is one part of the equation. The other part is that your stock is inside a market, and buyers and sellers combined determine its price. If you keep buying your stock, you create buying pressure, helping keep the price from falling.