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There is some cash hoarding (mostly overseas for tax reasons), but mostly what companies are doing are share buybacks. These are functionally equivalent to divi
by harryh 9y ago
There is some cash hoarding (mostly overseas for tax reasons), but mostly what companies are doing are share buybacks. These are functionally equivalent to dividends but more tax efficient.
- marcosdumay 9y agoLess and less people get to own more and more of the company, until it's completely self owned and the board won't answer to anybody anymore? Funny thing is, it may work better than the current conflict of interest company boards have.
- liveoneggs 9y agonah they just re-issue the stock at a big discount to their friends and then issue more at an inflated price to dilute regular shareholders
- marcosdumay 9y agoIn practice they split the stock once they brought back too much of it, so people can sell part of their holdings and the cycle goes on.