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Stock 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 o
by freehunter 7y ago
Stock 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.