Comments by "Farzana 🇺🇸" (@farzana6676) on "Thinkers Forum" channel.

  1. Lol, neither of you understand what a buyback is. Buybacks simply return money to continuing shareholders. They are then free to take that extra money and go invest in other companies or utilize it in the economy through spending or construction or investment. The private sector is not "wasting billions in buybacks" Good lord. Finance and Economics need to be mandatory subjects in school.
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  2.  @leonlowenstadter9223  Simple, the company may not see lucrative expansion projects or the investment climate may not be conducive to making large investments. Sometimes, the company finds its own stock to be severely undervalued, hence making a buyback the best allocation of capital. That is a decision between the board, the executives and shareholders to make. It has absolutely nothing to do with government. But to describe buybacks as "wasting billions of dollars" is absurdly ignorant.
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  3. @leonlowenstadter9223  It's not quite exxagerated. It is completely false. A CEO's job is to maximize shareholder value. The company is created to serve the interests of its shareholders. That maybe done through organic operations growth, acquisitions, buybacks or dividends. As long as shareholders are happy with CEO decision-making, nobody else has a right to say anything.
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  4.  @leonlowenstadter9223  Yes. I have no issues with this statement. If a company sees little room for growth, then return money to shareholders. That's exactly what they're supposed to be doing.
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  5.  @leonlowenstadter9223  Every company should not keep growing. Some companies can maintain stable size and keep returning all free cash flow to shareholders.
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  6. @daveansell1970  Because majority of shareholders don't want dividends. They would rather a higher share price and they can decide to sell shares whenever they want to. Buybacks only make sense when a companies own stock is undervalued. Buybacks do not make sense when a companies own stock is severely overvalued. The reason you think it's scam is because you don't understand it.
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