Re:GM’s Stock Buyback Is Bad for America and the Company
by waltertan12 on Friday March 13, 2015 @07:38AM
(#9196622)
Yeah, my mistake. I guess my argument was against how there was "nothing scary about them." This article wouldn't exist if there wasn't some concern about buybacks.
A stock repurchase is a way to move money from the company to the stockholders. Exactly the same as dividends.
In an efficient market, the effects on market capitalization (outstanding stock * stock price) of dividends and stock repurchases will be exactly the same.