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No, just no. Capital extraction, be it dividend payout or stock buybacks, benefit existing stockholders, by definition. Stock buybacks, however, as opposed to d
by friendzis 3y ago
No, just no. Capital extraction, be it dividend payout or stock buybacks, benefit existing stockholders, by definition. Stock buybacks, however, as opposed to dividend payout, in a free-ish market increase stock price, which prevents those with less free capital from being stockholders in the first place, which, under capitalist system, are the workers.
Stock buybacks benefit those with previously free capital while at the same time hurting those without free capital currently. In a capitalist system this does hurt workers quite a bit.
- jezzamon 3y agoAm I missing something in your argument? Are you saying the price of an individual stock is what's pricing people out? Having trouble reconciling that with the fact that only a few stocks are above $1000 (which doesn't seem to hard to reach if you want any substantial savings), and then stock splits and fractional shares happen often. Or are you just saying that they will own a smaller percent of the total stock, so they have less say as stockholders?