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Not an expert by any means, but my understanding is that share buybacks basically increase the value of the remaining shares by reducing the total number (it in
by dcchambers 2y ago
Not an expert by any means, but my understanding is that share buybacks basically increase the value of the remaining shares by reducing the total number (it indirectly helps raise the price anyway). It's a way to help elevate the stock and keep investors happy if results are less than stellar...and Apple has cash to burn.
There are two ways companies can provide value to investors through their shares - pay dividends or do buybacks.
- otterley 2y agoBuybacks have tax advantages, which could be another reason Apple opted for it instead of a dividend. https://www.taxpolicycenter.org/sites/default/files/publication/165800/what_is_the_us_tax_advantage_of_stock_buybacks_over_dividends.pdf https://www.taxpolicycenter.org/sites/default/files/publicat...