Laurent GUERBY wrote: >> 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.
me: > Even if they have a similar (or identical) impact on stock prices, is > it possible that stock buybacks reward the gamblers on the stock > market, while dividends reward the "buy and hold" people? if so, it > might encourage the "short-termism" that many see and criticize in > stock markets. in addition, it used to be that some "blue chip" companies kept their status by paying regular dividends, so that their stock was "almost like bonds" (with fixed regular payments). On the other hand, the presumption with stock buybacks seems to be that it's a one-shot (or few-shot) deal, befitting a stock that fluctuates a lot. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
