4 ms·
Stock buyback is also equivalent to paying cash dividend (ignoring the tax issues).
by nivertech 4y ago
Stock buyback is also equivalent to paying cash dividend (ignoring the tax issues).
- s1artibartfast 4y agoStock buybacks have advantages relative to cash dividends for tax purposes because tax on dividend profits are taxed annually, and stock appreciation is taxed in the year of sale.
- CTDOCodebases 4y agoThis is a valid point. If a buyback has been announced then the share is worth at least what the company buying back the share has agreed to.