Comments by "seneca983" (@seneca983) on "More Perfect Union" channel.

  1. I don't think this video makes much sense. Stock buybacks are in principle equivalent to dividends (though in practise there are differences in e.g. tax treatment etc.). If you think companies spend too much on stock buybacks instead of investment, you should know that companies can do the same thing through dividends. Thus there isn't much reason to expect that banning or taxing stock buybacks would change that. Similarly, if you think executive compensation is excessive there isn't much reason for you to expect that banning or taxing buybacks would change that either. Both of those things are more due to corporate culture than buybacks since dividends can achieve the same thing as buybacks.
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  2. 7:10 Stock buybacks are just a way of transferring profits to owners. Theoretically they're equivalent to dividends.
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