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A comment on Companies Use Borrowed Billions to Buy Back Stock, Not to Invest. Parent comment

Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by cowsandmilk on Saturday August 10, 2019 @06:15PM (#20664797)
> Companies can create new shares out of nothing anytime they want.

Companies have a number of authorized shares and typically need shareholder approval to increase it. Sure, they typically set the number of authorized shares high enough to run into the problem with any frequency, they can't "create new shares out of nothing anytime they want."

[ Parent | on HN ]
Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by harryh on Saturday August 10, 2019 @06:22PM (#20664831)
Consider the "they" in my "anytime they want" to be the shareholders. My point was that if the shareholders want to use stock for things like employee compensation or an acquisition they don't have to buy this stock from the market. They just make new shares.
[ Parent | on HN ]