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I am not an investor nor economist, I had a course on technical analysis of stock markets so I have some understanding. To me it seems like a very strange idea
by concerned_user 7y ago
I am not an investor nor economist, I had a course on technical analysis of stock markets so I have some understanding. To me it seems like a very strange idea to put safety fund into your own stock. If things go bad your stock will be dropping. Sane thing to do if you want to save that value is to buy government bonds or other securities not your own stock.
- nabla9 7y agoBuyback is alternative to dividend. It's a way to give money to shareholders. Stocks bought are usually canceled. In other words, those stocks bought don't show in the company balance sheet as assets they own. They are gone, they are not investments.