> then if they need cash they could just take a loan against the stock. When companies buy back stock, they typically cancel it. That's why the price goes up s

> then if they need cash they could just take a loan against the stock. When companies buy back stock, they typically cancel it. That's why the price goes up so much of the remaining stock held by shareholders. So they wouldn't be able to "just take a loan against the stock". It no longer existed. All they'd be able to do is to ask ask their investers for more money.