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Companies buy back shares as a different way than dividends to enrich their shareholders.
by BurningFrog 4mo ago
Companies buy back shares as a different way than dividends to enrich their shareholders.
- whall6 4mo agoExactly: enrich shareholders at the expense of their own coffers.
- andsoitis 4mo ago> enrich shareholders at the expense of their own coffers. This makes no sense. The coffers belong to the shareholders.
- whall6 4mo ago“belong” is a flexible word. You’re right in theory but depending on the situation money in your bank account is worth more to you than an equivalent amount of money in a company’s bank account (of which you are a shareholder).
- BurningFrog 4mo agoJust like dividends.
- tony69 4mo agoIn big tech’s case it’s mostly to offset massive stock compensation of executives and insiders