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It's basically rent seeking behavior if you taking public money and then using it to enrich yourself with no benefit to the public. That money could be 1) saved
by rorykoehler 7y ago
It's basically rent seeking behavior if you taking public money and then using it to enrich yourself with no benefit to the public. That money could be 1) saved for a rainy day (like now) so they won't have to ask the public for money or 2) reinvested in the company to generate more value. As it is it just sucks value from the economy while also artificially increasing the stock price.
- smaryjerry 7y agoIt does the opposite. Buybacks send that money directly back into the economy to the shareholders that sold.
- madhadron 7y agoInto the economy, perhaps, but not generally into circulation. Most shares are held by institutional funds or the wealthy, which is about the least useful place to put money for stimulus.
- zentiggr 7y agoAnything that increases share values or enriches shareholders is going straight into the hands of the 1%, or the funds that hold huge percentages of the market. It's not going out to be respent.
- greenshackle2 7y agoYou didn’t explain how this is different from dividends.
- rorykoehler 7y agoDividends don't increase wealth concentration.