We have a choice: buybacks or bailouts. Buybacks are just a tax efficient method of transferring money from companies to their shareholders. That’s the reason why companies exist, to allow their shareholders to profit. The problem with buybacks is that they are easily gamed by
That's a good point, but correct me if wrong, buybacks still increase stock price both during period 1 and 2.
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It shouldn't increase during period 2 unless the company was expected to waste that cash if it hadn't gone to buybacks.
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