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A comment on Stock buybacks are dangerous for the economy. Parent comment

Re:Stock buybacks are dangerous for the economy by jsight on Tuesday March 17, 2020 @04:45PM (#22610189)
I do not understand why that would happen. Wouldn't they inflate the earnings per share, resulting in a permanently higher share price (all else being equal)?
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Re:Stock buybacks are dangerous for the economy by dlp211 on Tuesday March 17, 2020 @05:05PM (#22610415)
If stock price was actually based on pure fundamental analysis, sure. That is not at all reality though.
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Re:Stock buybacks are dangerous for the economy by jsight on Tuesday March 17, 2020 @05:08PM (#22610448)
After I wrote that, it occurred to me that there is another counterargument. If cash-on-hand decreases along with the inflation of earnings-per-share, the business value doesn't really increase.

I have always assumed that shareholders wouldn't take this into account, but maybe they deserve more credit than I've been giving them.

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