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Two things: -Stock buybacks are not manipulation, they’re simply a way to return cash to shareholders and then the shareholder decides when to incur tax liabil
by quickthrowman 2y ago
Two things:
-Stock buybacks are not manipulation, they’re simply a way to return cash to shareholders and then the shareholder decides when to incur tax liability. A company is well within its rights to issue additional shares or buy back and destroy shares at their discretion. It’s functionally equivalent to a dividend without a taxable event.
-Corporate boards award stock grants to executives because they want management to be aligned with shareholders. I think executive compensation is excessive, but stock grants do align management and shareholders.
- chipsrafferty 2y agoDilution is immoral and unfair to investors. If a company wants to raise money they should have to sell shares they own, not print more and sell those.
- l33t7332273 2y agoI think it’s kind of up to the investors what is unfair for them.
- quickthrowman 2y agoThat is your opinion and does not reflect reality.
- _DeadFred_ 2y agoIf it's intent is to manipulate the value of the stock, then it is stock manipulation. You give a distinction without a difference.