On Tue, 2008-09-02 at 11:07 -0700, Perelman, Michael wrote: > Theoretically, shareholders might be interested in profits, but given > the rapid turnover of stocks, you might be forgiven for thinking that > shareholders are interested in stock prices.
Theoretically current stock prices are to reflect estimates of future profits so there should be a strong connection between the two. In this debate there are two real issues to look at: - what firms should do with their profit (political choice) - what are the tax treatments of dividends vs share buybacks (close a loophole for fairness?) I would love to see academia have a serious look at the second point. But shooting down share buybacks on "speculator are bad" ground is just misinformed. Laurent _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
