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Handing money back to stockholders isn't a scam. Every stock buyback either a) gives me money if I sell and I get to keep the same % of the company I owned befo
by danielmarkbruce 4y ago
Handing money back to stockholders isn't a scam. Every stock buyback either a) gives me money if I sell and I get to keep the same % of the company I owned before, or b) makes me own more of the same company. And the tax treatment is better than a dividend.
- latchkey 4y ago> And the tax treatment is better than a dividend. How do you think that rule got passed?
- danielmarkbruce 4y agoWhich rule exactly? There are a number of rules interacting which make buybacks in the US better right now, it's not just a rule that says "buybacks will have better tax treatment than dividends". The dividend tax rate could be changed to zero tomorrow (or the tax treatment on dividends could become like other countries who don't double tax) and buybacks would be less favorable. Taxes are complicated, there will always be one choice which is better than another from a tax perspective.