Corporate Stock Buybacks

T

transporter

Well-Known Member
Gilligan said:
Tranny loves them, but...




https://www.investors.com/politics/editorials/stock-buybacks-evil/
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Out the whole article that is all you got? I'll ask the same questions I always do...why do you keep posting about anything other than guns. Guns seems to be the only topic on the entire planet where you actually do have some knowledge. Everything else is just beyond you.

That's important to understand. Last year's tax cuts boosted corporations' after tax income by a significant amount by cutting the corporate tax rate from around 35% to 21% — a 40% tax cut. They spent billions of that on bonuses for workers and ramped up investment in their own operations. Only then did they start the really big stock buybacks
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Sorry Gilligan this is misleading at best and factually inaccurate at worst.

It had already been well documented that the amount of bonuses and raised amounted to about 10% of the cash returned and tax breaks given.

No, publicly traded companies did not reinvest first. They announced their share buybacks and dividend increases long before any re-investment plans. Your source uses a 2005 study to support it's argument that companies reinvest first? Didn't look at that did you? All that post grad level education and you fail at the basics...the conclusion of the paper is correct...and has nothing to do with the issue at hand which is what did corps do with the windfall after the tax cut. Here is the conclusion:

Our findings indicate that maintaining the dividend level is on par with investment decisions, while repurchases are made out of the residual cash flow after investment spending.
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https://www.sciencedirect.com/science/article/pii/S0304405X05000528

Investment decisions are long term issues. Investment doesn't happen on a whim as your article states. Investments were already in place.

Dividends and buybacks received the lions share of repatriation or tax cut monies from the legislation passed last year. Using the conclusion of a paper written in 2005 doesn't change what actually happened in 2018.
 
Clem72

Clem72

Well-Known Member
Stock buybacks are the opposite of issueing stock in lieu of taking on debt. If you never bought the stock back, you would inflate away all value from your investors. Any premium paid is equivalent to paying interest on a loan.
 
GURPS

GURPS

INGSOC
PREMO Member
transporter said:
Sorry Gilligan this is misleading at best and factually inaccurate at worst.
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Science Direct - 384 financial executives and conduct in-depth interviews with an additional 23 .... :eyebrow:

yeah there is a huge sample ...


:tantrum

transporter said:
Every post you make is against anyone or any group that doesn't conform to your propagandist viewpoints.
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:blahblah:

Fantasy, Supposition, Innuendo and Unfounded OPINION
 
CPUSA

CPUSA

Well-Known Member
transporter said:
Out the whole article that is all you got? I'll ask the same questions I always do...why do you keep posting about anything other than guns. Guns seems to be the only topic on the entire planet where you actually do have some knowledge. Everything else is just beyond you.



Sorry Gilligan this is misleading at best and factually inaccurate at worst.

It had already been well documented that the amount of bonuses and raised amounted to about 10% of the cash returned and tax breaks given.

No, publicly traded companies did not reinvest first. They announced their share buybacks and dividend increases long before any re-investment plans. Your source uses a 2005 study to support it's argument that companies reinvest first? Didn't look at that did you? All that post grad level education and you fail at the basics...the conclusion of the paper is correct...and has nothing to do with the issue at hand which is what did corps do with the windfall after the tax cut. Here is the conclusion:



https://www.sciencedirect.com/science/article/pii/S0304405X05000528

Investment decisions are long term issues. Investment doesn't happen on a whim as your article states. Investments were already in place.

Dividends and buybacks received the lions share of repatriation or tax cut monies from the legislation passed last year. Using the conclusion of a paper written in 2005 doesn't change what actually happened in 2018.
Click to expand...

I don't believe your crap story one. effing. bit.
You should stick to posting what you know about...
What DO you know?
 
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