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No. Stock price requires higher per share values. One can continuously grow a stock if they reduce the shares outstanding. That being said iirc buy backs have
by maerF0x0 3y ago
No. Stock price requires higher per share values.
One can continuously grow a stock if they reduce the shares outstanding.
That being said iirc buy backs have notoriously all gone to executives. Essentially they buy back, and then award themselves options to re-dilute, but cannot readily find a source for that. So maybe incorrect.
- lotsofpulp 3y agoWhen a business does a stock buyback, the business receives the stock, not any executive(s). The business might pay the executive with stock per the board approved compensation package, but a CEO does not wake up and say “I want to give myself 5M shares so let’s do a 5M share buyback”. A buyback benefits all shareholders equally by reducing supply of the stock and therefore increasing its price.
- maerF0x0 3y ago> the business receives the stock correct. Hence my wording > and then award themselves options to re-dilute It's not that executives receive the bought back stock, but that their stock based compensation plans result in no net decrease in the amount of outstanding shares.