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> Companies also do buybacks to get a greater ownership stake. Greater ownership stake in what? Companies, at least in the US, can't own themselves. Stock buyb
by Aloisius 3y ago
> Companies also do buybacks to get a greater ownership stake.
Greater ownership stake in what? Companies, at least in the US, can't own themselves. Stock buybacks merely reduce outstanding shares effectively increasing the percentage of the company owned remaining shareholders.
- BeetleB 3y ago> Companies, at least in the US, can't own themselves. These are technicalities: The point was to prevent things like hostile takeovers: https://www.sciencedirect.com/topics/economics-econometrics-and-finance/share-repurchase https://www.sciencedirect.com/topics/economics-econometrics-...
- Aloisius 3y agoSure, but we get the same thing with dividends. If we eliminated stock buybacks tomorrow, little would be lost other than insiders wouldn't be able to use buybacks to unduly enrich themselves and people having to pay some capital gains taxes.