Re:S&P 500 to exclude Snap after voting rights debate
by toast0 on Wednesday August 02, 2017 @01:17AM
(#14908119)
Outside of taxation, a buy back is essentially equivalent to a dividend that you're forced to reinvest. At the end of the day, all of your shares are worth a smidge more of the company. Certainly, the price could go down after a buyback, same as if you reinvested the dividend.
The benefit for shareholders is that the shareholder can decide when to recognize that as a capital gain; the negative for shareholders is that they can't recognize only the portion of their capital gains related to the buy back.
The benefit for shareholders is that the shareholder can decide when to recognize that as a capital gain; the negative for shareholders is that they can't recognize only the portion of their capital gains related to the buy back.