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>This couldn’t be further from truth. Buybacks are the result of executive incentives to hit a certain stock valuation. Why do you ignore the people who choose
by aguyfromnb 7y ago
>This couldn’t be further from truth. Buybacks are the result of executive incentives to hit a certain stock valuation.
Why do you ignore the people who choose to sell their shares to the company?
Stock buybacks move cash from the company's coffers into the hands of selling shareholders, period. Whether it's good or bad to do so at any specific time is certainly debatable, but the idea that it "manipulates" the share price is wrong, both in theory and practice.
- r_luna 7y agoAs a shareholder I want my money to be managed in a way that maximizes my investment. When executives incentives are paid by the value of the stock at a particular frozen moment in time, I get cheated. I get cheated because a buy back at the moment that the CEO and the board grade themselves is not in best long term interest of my wealth. I don't have time to be buying a selling stock everyday, they're fucking me by playing games. Money should be spent on research and development. That way GM and IBM dont become kodak, Walmart doesnt become Sears, and the great GE doesn't become...well GE is already there. Established american companies will grow from buy backs and mergers until they get disrupted because they didn't invest.
- jonathankoren 7y agoTell me how a stock buyback (ie a reduction in supply under constant demand) results in a falling share price. It’s a common very common way to juice the numbers. As for those that choose to sell, its obviously. It’s free money.