Re:Stock buybacks are dangerous for the economy
by paganel on Tuesday March 17, 2020 @06:39PM
(#22611349)
> the top 50 again sees more trading than the entire 450 rest combined.
I have no number to substantiate this hunch but I believe that that was one of the main reasons why Boeing's shares continued to still remain at a reasonable level even after the MAX debacle, even though under normal circumstances its shares should have seen at least a 50-60% nose-dive immediately after the first signs of corporate malfeasance.
But when almost every big pension fund on the planet has to purchase your shares because it's included in a big index that will never fail of course that the stock market won't "punish" despicable moves like the one committed by Boeing.
I have no number to substantiate this hunch but I believe that that was one of the main reasons why Boeing's shares continued to still remain at a reasonable level even after the MAX debacle, even though under normal circumstances its shares should have seen at least a 50-60% nose-dive immediately after the first signs of corporate malfeasance.
But when almost every big pension fund on the planet has to purchase your shares because it's included in a big index that will never fail of course that the stock market won't "punish" despicable moves like the one committed by Boeing.