Quote:
Originally Posted by Pete F.
Stock prices are not the same as corporate profits though they can be driven by increases in volume, increases in profitability or stock buybacks.
Stock buybacks do little to ensure the future viability of a corporation, since they are made instead of capital investments.
Guess what corporate America’s doing
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You were complaining about the increase in net worth of CEOs of the largest companies. Their net worth is usually tied to stock prices, because they have tons of options. They didn't make $8B in ordinary income this year.
"Stock buybacks do little to ensure the future viability of a corporation"
So you know more than the CFOs of those publicly traded companies. Sure, why not! Stock buybacks are usually a sign that a company thinks it's in a good place. Stock buybacks aren't the evil boogeyman liberals paint them to be. They can be beneficial to everyone who owns stock.