When should an issuer with low average trading volume avoid repurchasing its own securities?

An issuer with low average trading volume should avoid repurchasing its own securities during the last 30 minutes of trading to prevent impacting the market price significantly. This time frame is often characterized by increased volatility and a higher potential for price fluctuations as traders position themselves for the end of the trading day. Buying back shares in this period could lead to a dramatic increase in stock price or create an artificial impression of demand, which can be particularly harmful in a low-volume environment where fewer shares are changing hands.

Repurchasing shares during more stable periods, such as the earlier part of the trading day or when the market is less active, can help mitigate the risk of price manipulation and unintended consequences on market perception. Therefore, it’s crucial for issuers to time their repurchase activities effectively to ensure compliance with market regulations and maintain fair market conditions.