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A comment on When CEOs’ Equity Is About to Vest, They Cut Investment to Boost the Stock Price. Parent comment

Re:When CEOs’ Equity Is About to Vest, They Cut Investment t... by thaumasiotes on Friday March 02, 2018 @03:05PM (#16505183)
> which is why stock buybacks sometimes have the surprising effect of elevating the stock price, at least in the short run

All large stock purchases have the short-run effect of elevating the stock price. It would be shocking if this didn't happen; it is not surprising in the slightest that it does.

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Re:When CEOs’ Equity Is About to Vest, They Cut Investment t... by adamlett on Friday March 02, 2018 @04:30PM (#16505895)
It’s “surprising” because—assuming the company is correctly valued by the market—the company should become less valuable when the cash is spent. The company doesn’t “get” anything for the money, because the shares it buys, get retired.

Edit: Sorry, I got myself confused and mixed up the total market cap (which should go down) with the share price (which should stay the same, because there are now fewer of them).

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