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Yeah I still don’t really understand lol. Buybacks are equivalent in effect to dividends except tax implications and small details. You didn’t mention those bu
by travisjungroth 4y ago
Yeah I still don’t really understand lol.
Buybacks are equivalent in effect to dividends except tax implications and small details. You didn’t mention those but did mention buyback dividend axis so I’m taking it you think dividends should be outlawed as well. I’m not sure the stock market would function if that was the case.
- meltyness 4y agoBuybacks create false value, dividends redistribute value. Buybacks would be equivalent to dividends if there was 100% consensus that the company's market value was headed up, faster than any other asset -- such that all recipients started trying to buyout others.
- wombatpm 4y agoWith a dividend I get income and still own the stock. With a buy back I have to sell to see my money. Not the same
- travisjungroth 4y agoWith a buyback your percent ownership goes up. You can sell stock to maintain the same percentage but get cash.