Re:Companies Use Borrowed Billions to Buy Back Stock, Not to...
by dodobirdlord on Saturday August 10, 2019 @07:39PM
(#20665222)
This is not correct. Companies conducting buybacks do so at a low rate over a long period of time exactly to avoid having the impact that you're describing. Companies buy their shares back at the market price, and the normal transaction volume of a large companies shares dwarf the size of buybacks it may be conducting.
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Re:Companies Use Borrowed Billions to Buy Back Stock, Not to...
by nootka on Sunday August 11, 2019 @06:35AM
(#20667477)
This is my understanding as well, but is there any law to this effect?
Re:Companies Use Borrowed Billions to Buy Back Stock, Not to...
by dodobirdlord on Sunday August 11, 2019 @01:30PM
(#20669254)
Why would there be a specific law covering this situation? It's an obvious violation of fiduciary responsibility to buy back shares in an inefficient, price-elevating fashion.