4 ms·
Doesn't one require the other? You have to buy back the stock from someone. That someone is necessarily divesting themselves of the stock as a result.
by asdfasgasdgasdg 7y ago
Doesn't one require the other? You have to buy back the stock from someone. That someone is necessarily divesting themselves of the stock as a result.
- deleted 7y ago[deleted]
- throw0101a 7y agoYou are technically correct, but the GP is alluding to the intent of the companies/executives. In one case the intent is good (proper allocation of cash); in the other it is not-good (engineering financial bonuses for themselves).
- ultraluminous 7y agoIf you're referring to "...investors have been cashing out of US stocks at a record pace", than to further clarify - investors are divesting out of the public stock market entirely. They're not selling their Apple stock in a buyback to invest the proceeds of the sale into an exciting IPO, or a deep value small cap. They're just taking it out of entirely. Think what that implies about the macro structure of a "market economy" when the majority of new money going into stocks is executive/company initiated stock buy backs, and not "investment".
- frockington1 7y agoMacro, it seems to mean that owners believe in their companies and want more equity. Hardly a bad thing unless you're trying to predict the next recession
- papito 7y agoYou don't have to "believe" if you are planning on getting out before the chumps do. It's like robbing a bank, only legally.