Re:Airlines want to cancel rule requiring them to refund far...
by dmurray on Tuesday April 07, 2020 @07:47PM
(#22808718)
Instead of buybacks being a "forced reinvestment", it would be more accurate to say dividends are a forced divestment. If the company spends $1/share on buybacks and you hold 100 shares, you can either keep the shares or sell $100 worth and get cash instead. If the company gave you a $1/share dividend, you couldn't use that to buy $100 worth of stock, because taxes.
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