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Yes you’re wrong - it’s literally not paying back debt. It’s an attempt to appease stockholders because their actual financials can’t keep up, thus reducing the
by huntertwo 3y ago
Yes you’re wrong - it’s literally not paying back debt. It’s an attempt to appease stockholders because their actual financials can’t keep up, thus reducing the price of the stock, thus reducing the compensation packages of the executives and wealth of the board, who is also elected by shareholders.
- vitiral 3y agoI mean I get that argument too. But is what I said wrong? Isn't stock being continually issued, diluting the value over time? If buybacks were _never_ done, wouldn't it keep getting diluted forever? Edit: for instance, if Google has 200,000 employees and is granting an average of $50,000 stock per year, that is $10 billion. So id be okay with buybacks of that size. The actual buybacks are much bigger if memory serves, so that seems like manipulation like you're saying
- spicyusername 3y agoOne thing that bothers me about the current economy is that most tech workers are are paid in stock and most Americans are required to invest to retire. This is basically a net fiscal transfer from regular Americans to tech workers, since tech stocks are typically the default investment when retirement is more than a decade away, artificially raising the price of tech stocks. Tech workers sell now while the price is artificially high and everyone else is left gambling later after all the tech workers have cashed out.