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No, it buys it /because it has money to spare/. Having the money to spare makes it a good investment.
by davrosthedalek 3y ago
No, it buys it /because it has money to spare/. Having the money to spare makes it a good investment.
- Retric 3y agoCompanies can have net profits and be terrible investments. The exact same company can be a great investment at 10$, and a terrible investment at 10,000$. You can’t separate stock price from if something is a good investment or not. The example I gave was low risk 1% dividend, that’s not a stock I would want to own. Net result the company, which has inside information, should expect the price to correct ie fall at some point and thus be a poor investment until that point. That doesn’t prevent them from buying it because the goal isn’t a positive ROI.