Re:Companies Use Borrowed Billions to Buy Back Stock, Not to...
by sokoloff on Saturday August 10, 2019 @09:46PM
(#20665695)
I think you misunderstood the main point of @whatshisface.
If a company buys back shares from an existing investor (EI), EI now has cash and is likely to either spend that money (if they're a retiree selling shares for income) or reinvest that cash into some other investment. It's very unlikely that they're going to keep that new money in cash or a savings account.
If a company buys back shares from an existing investor (EI), EI now has cash and is likely to either spend that money (if they're a retiree selling shares for income) or reinvest that cash into some other investment. It's very unlikely that they're going to keep that new money in cash or a savings account.