4 ms·
"blew" isn't accurate because stock buybacks aren't spending money. That's kind of like saying contributing to an investment account is spending money. You can
by astrange 1y ago
"blew" isn't accurate because stock buybacks aren't spending money. That's kind of like saying contributing to an investment account is spending money.
You can sell the stock again, or use it for employee compensation.
- eviks 1y agoNo, they are spending money, there is no substantial difference between dividends and buyback here since the companies issue their own stock, so they don't need to buy anything to sell it, they can try to get more money from investors in both cases. Investment account analogy fails because you're not investing in your own ownership, so there is no "circular" relationship with yourself
- SR2Z 1y ago> since the companies issue their own stock, so they don't need to buy anything to sell it, Public companies diluting shareholders generally causes people to flee for safer investments. A company is not a person. It doesn't always own 100% of itself.
- eviks 1y agoSelling treasury stock has the same effect of diluting external shareholders, so the safety thing is the same - it depends on their assessment of the underlying reality. And the person doesn't own himself, he is himself