3 ms·
Alright. Then any company that participates in share buyback obviously shouldn't get any stimulus money, then right? Because if they have that much cash on hand
by fuzzer37 6y ago
Alright. Then any company that participates in share buyback obviously shouldn't get any stimulus money, then right? Because if they have that much cash on hand, they should give it to shareholders instead of investing in the company or saving it for lean times.
- dodobirdlord 6y agoCorrect, the government should generally not hand out stimulus as free money. Forcing the company to issue new stock and sell it to the government at market rate achieves all of the positive effects of stimulus, while also eliminating the perverse incentive to operate with no safety margin in the hopes of a bailout.