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Buybacks generally benefit top 1% or the C-level and make them richer. The impact on 401k of common is just a gain in few percentages or maybe some extra divide

Buybacks generally benefit top 1% or the C-level and make them richer. The impact on 401k of common is just a gain in few percentages or maybe some extra dividend. Also there is a conflict of interest CEO's are paid in stock and the only way in which they ensure they make more money is to take actions which boost the value of company stock. Market cap and higher the stock values also can be used in so many different ways, like acquisitions and also as a tool to leverage as an equity against which money can be borrowed.

astrodust 8y ago
It's also a sign the companies have too much money and not enough opportunities to spend it on.
- akshayB 8y ago
  Companies hoard cash because they want to ensure continuity. I loose respect for companies which go an extra mile to exploit loopholes. All companies do it. For example - Apple borrows money to pay dividend to stock owners even though they have unbelievable amount of money. But somehow the messed up US tax code this action sounds logical.
  - astrodust 8y ago
    That's just what you get when you hire accountants that know what they're doing and are obligated to pursue the path which results in the lowest amount of tax paid as permitted by law. If Apple didn't do this they'd get sued. Activist shareholders would be all over them in an instant. That puts them in a tough spot. I'm sure Apple would rather that loophole was closed, it's really absurd that they have to do all this just to make it work, but there's nothing they can do about it. The problem here is that the US tax system is utterly bizarre.
    - fjsolwmv 8y ago
      It's an utter myth that a company can be punished by its shareholder's for paying too much tax, just as it's a myth that they could be punished for letting their employees due paid volunteer work.
      - astrodust 8y ago
        Tell that to Carl Icahn.
- maerF0x0 8y ago
  And yet Chinese investors and Softbank keep finding dozens of places to throw Billions.
  - fjsolwmv 8y ago
    That because SoftBank isn't stuck with an immediate 35% tax bill when they invest in a US company. https://www.marketwatch.com/story/apple-isnt-really-sitting-on-216-billion-in-cash-2016-01-26 https://www.marketwatch.com/story/apple-isnt-really-sitting-...
fjsolwmv 8y ago
What's wrong with gaining a few percentages or extra dividends?!

astrodust 8y ago

It's also a sign the companies have too much money and not enough opportunities to spend it on.

akshayB 8y ago
Companies hoard cash because they want to ensure continuity. I loose respect for companies which go an extra mile to exploit loopholes. All companies do it. For example - Apple borrows money to pay dividend to stock owners even though they have unbelievable amount of money. But somehow the messed up US tax code this action sounds logical.
- astrodust 8y ago
  That's just what you get when you hire accountants that know what they're doing and are obligated to pursue the path which results in the lowest amount of tax paid as permitted by law. If Apple didn't do this they'd get sued. Activist shareholders would be all over them in an instant. That puts them in a tough spot. I'm sure Apple would rather that loophole was closed, it's really absurd that they have to do all this just to make it work, but there's nothing they can do about it. The problem here is that the US tax system is utterly bizarre.
  - fjsolwmv 8y ago
    It's an utter myth that a company can be punished by its shareholder's for paying too much tax, just as it's a myth that they could be punished for letting their employees due paid volunteer work.
    - astrodust 8y ago
      Tell that to Carl Icahn.
maerF0x0 8y ago
And yet Chinese investors and Softbank keep finding dozens of places to throw Billions.
- fjsolwmv 8y ago
  That because SoftBank isn't stuck with an immediate 35% tax bill when they invest in a US company. https://www.marketwatch.com/story/apple-isnt-really-sitting-on-216-billion-in-cash-2016-01-26 https://www.marketwatch.com/story/apple-isnt-really-sitting-...

fjsolwmv 8y ago

What's wrong with gaining a few percentages or extra dividends?!