3 ms·
Giving the companies profits to the people who own the company is not "financial engineering". Apple has decided it cannot effectively use that money for R&D, s
by Godel_unicode 7y ago
Giving the companies profits to the people who own the company is not "financial engineering". Apple has decided it cannot effectively use that money for R&D, so it isn't
- freehunter 7y agoStock buybacks may be a way to give profits to the people who own the company, but they are also 100% financial engineering considering it has a direct impact on stock price and earnings per share. Stock buybacks were illegal until 1982, being considered a form of stock manipulation. Even though it's legal now, it's still one of the best forms of stock manipulation.
- dodobirdlord 7y ago> it has a direct impact on stock price A company buying its own stock at market price is a wash. The reduction in the value of the company and the increase in the value of each remaining share balance out.