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Originally Posted by CoachKandSportsguy
cherry picking general knowledge financial article support, eh? Have you ever personally benefited from corporate buybacks? Have you ever participated in executing buyback plans? Have you ever seen what happens with the stock after corporate buy backs?
and, yes, I have when working at high levels in corporate america. . . both pricing out buying back stock levels for purchases, and receiving the stock and watching sr executives get those shares for personal gain. . and accounting friends of mine at places like GE relate abuse stories to me as well. . . personally getting dividends from contractual, but UNGRANTED shares. . . as well as seeing executives go to the pokey for illegal financial activities. . it will never stop with corporatism. . .
Here is a link to read about them from a former wall street money manager,
Stock Buybacks!™ and the Monetization of Stock-Based Compensation - Epsilon Theory
About common logic. . .
Sheep Logic - Epsilon Theory
after years of working on wall street, his view and mine, BITFD IFYKYK
so if your your finance experience comes from, watching CNBC, or listening to wealth management sales pitches, you are probably are just repeating common knowledge, which everyone believes and knows. . which in the financial world is sheep logic . . |
Some day hope we can sit down and have an interesting discussion on finances.
In the meantime, when corporations do buybacks some interesting things happen with the cash one receives for their shares.
Pay capital gains tax on profits and than either spend the money on goods, or invest the money in new business providing jobs to the rest of us.
As do many of us own shares in mutual funds. The buybacks increase the value of the rest of the shares and fund prices go higher. Makes my IRA and millions of others of higher value. Yours too I would bet. Makes my taxes go up as I must increase my RMD most years. Is this a bad thing?
Is capitalism perfect? Of course not but you want to tell me about a better system?