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What happens to the money that people who sell during stock buybacks realize? If public stocks are mainly going up due to that, the money must be going into some other assset class or consumption, right? How does the equation balance?
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Focusing in on just the second sentence. Are you saying buybacks drive up stocks because it distributes cash to the previous owners, who then invest the cash?
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Seems reasonable enough. FWIW I usually think of buy-backs in a company-specific fashion. A company's buyback program drives up its stock price as a result of EPS growth, improved capital structure, and increased scarcity of the stock
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