4 ms·
Before the 1980s, buybacks were illegal and seen as stock manipulation. We should get back to that. If you can't find a good use for the money, pay dividends.
by jonahhorowitz 7y ago
Before the 1980s, buybacks were illegal and seen as stock manipulation. We should get back to that. If you can't find a good use for the money, pay dividends.
- pcurve 7y agoI wonder what the short term and long term consequences of the buyback ban might be. It could probably an interesting debate topic over drinks that could go on for hours ;-) Short term, it will probably lead to equity market tanking, especially if it is not coordinated with the rest of the world capital market. I guess I'm more interested in long term impact on how companies operate, compensates executives, manages assets. Dividend will still be allowed.
- TimTheTinker 7y agoI strongly agree. I wonder if it would help for a new kind of union to arise - one that exists only to guarantee good wages for its members -- to force companies to direct more profits toward wages instead of towards stock buybacks.