On Sat, 2008-08-30 at 16:08 -0700, Michael Perelman wrote: > I have written a couple times about the irrationality of stock buybacks > from the standpoint of corporations using their money to manipulate stocks > in expectation of higher bonuses. [...]
Stock buybacks are strictly equivalent to dividends from an economics point of view: it's just a way to move money from the company to the shareholders. The real meat of the issue is the tax regim for the company and shareholders in both case. Dividend tax regime tend to be well known, unfortunately for stock buybacks it's not clear to me at all. I suspect at least some shareholders benefit more from buybacks in some way, wikipedia mention stock option holders: http://en.wikipedia.org/wiki/Treasury_stock But there's probably more to it, any taker? Laurent _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
