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I'm not sure we should accept "returned to shareholders" at face value. Nothing is really returned to shareholders. Shareholders own that money (as they own al
by dalbasal 5y ago
I'm not sure we should accept "returned to shareholders" at face value.
Nothing is really returned to shareholders. Shareholders own that money (as they own all Apple's assets) before the buyback. After the buyback, they no longer own the money... but share value has (in theory) not changed because it now represents a larger portion of this smaller asset.
- fairity 5y agoIn the case of a buyback, cash is literally returned to the shareholders who participate in the tender offer by selling their shares back to the company.
- dalbasal 5y agoThey're no longer shareholders. And, since buybacks are value neutral... they're not getting a premium when they sell.