tell me why we shouldn't ban stock buybacks
literally dividends are better for individual investors and society
I'm the biggest capitalist in the world but buybacks are stupid as they only help corporate boards and stifle innovation and what could be R&D and/or pay raises for employees
The sweat and grime under his ballsack must taste like heaven.
get help
agreed, capitalism is like any game, there most be rules, otherwise we live in double ended dildo liberterian "paradise" but in the end its national socialists along ethnic lines that is the final solution.
Leave each culture to their own development and do not interfere with them.
"The Prime Directive is not just a set of rules; it is a philosophy… and a very correct one. History has proven again and again that whenever mankind interferes with a less developed civilization, no matter how well intentioned that interference may be, the results are invariably disastrous."
– Jean-Luc Picard, 2364
based
Based
Faggot
kill yourself your parents are ashamed of you
this is a woman
>literally dividends are better for individual investors and society
Substantiate this claim.
Economically, stock buybacks just avoid the reduction of the share price that dividends force. Practically, this forces shareholders to realize capital gains that are taxed during dividend payments, instead of giving the shareholders the ability to choose when they realize their capital gains (which can be at a time that is more beneficial to the individual investor than the company's dividend schedule).
>they only help corporate boards and stifle innovation and what could be R&D and/or pay raises for employees
Buybacks don't "only help corporate boards", they help all shareholders. Same argument applies to dividends. As an investor, you trust that the company will return its excess value to you when they cannot find profitable reinvestments in their own company. Buybacks and dividends both achieve this, although buybacks do it in a more tax-efficient manner. Dividends are just seen more favorably because historically that's how boomers chose their investments.
yer a hue op. make up your mind
dont corps just take fed hand outs and buyback their own stock, with tax payer, (your) money.
low iq
back to
Nah they just take out 1% debt from the fed and buy back stock with it. Not reinvest earnings. Debt financed. Long term utterly negative as that capital isn’t invested in actual growth type capex to get the E part of PE up but rather gets the shares outstanding down to juice the price. Financial manipulation to look like progress.
Also a stealth form of compensating employees via RSUs etc but thats neither here nor there
Nothing wrong with buybacks itself, it all depends on why you are doing it. If you are using profit to fortify your company against stock market crashes or hostile takeover, then I see nothing against that. But it gets shadier if you are taking out loans to make a few people richer or to get round dividend taxes.
The Tax Cuts and Jobs Act that was passed by the legislative branch and signed into law by the executive branch, lowered the tax rates for corporations. The corporations have to use this money that they do not pay in taxes "to act in what they believe to be the interest of the business corporate entity." Some determined redelivering these excess funds as value to the shareholder through corporate buybacks was the best use. Corporations have liabilities to their shareholders, not to the general public.
This is what the representatives of the American people voted for. If you don't like it, vote differently next time. If you have problems with companies not reinvesting all available capital, you should be anti-dividend then as well. You should keep in mind that reinvestment of capital can be more wasteful than returning that value to the shareholders. This is why dividends and buybacks exist. If an investment will never pay a return, then it's speculation. You should try to understand that there is no economic difference between dividends and corporate buybacks.
>Also a stealth form of compensating employees via RSUs etc but thats neither here nor there
It would be irresponsible for a corporation to not find the most efficient manner to reduce costs. RSU as compensation is a tax-efficient manner of compensating employees. As a shareholder, I prefer that the companies I invest in work to give me the best return possible.
companies are shit at when they decide to do buybacks though
dividends might be associate with boomers but at least they make sense
based and Picardpilled
again I'm a huge fan of capitalism and I'll only ever vote for Republicans in my life:
but don't you see how the general populace will take this and run with it:
"hey we got a huge tax cut and instead of having it trickle down to our workers in the form of more benefits, higher wages, etc we LITERALLY have NO IDEA what to do with it so we'll buy our own stock lmao"
you might think you're big braining it rn but 80% of Americans don't agree with you and unless you want unrealized capital gains to start getting taxed I would adjust fire for society's sake
You're concerned with how things "should" be, and I'm just concerned with how things are based on current laws and incentives. I'll repeat myself. Corporations have liabilities to their shareholders, not to the general public. This includes their own employees. If they don't consider paying their employees more a good investment, they won't do it. Enriching corporations will only serve to enrich themselves and their shareholders. It's very naive to give money to corporations and hope that they somehow help the general public in a roundabout way. They are not incentivized to help the general public. The mistake was cutting taxes for corporations, not failing to limit buybacks. If you cut the tax for corporations and limit buybacks, they'll find a different way to provide value for themselves and shareholders that may not benefit the general public (increase dividends maybe?).
Think we’ll get more Trumpbucks or an unemployment expansion?
I got $1200 and am getting an extra $600 a week from unemployment.
Who the hell is "we", NEET?
Oh fuck I thought I was making a new thread lol
>tfw someone on unemployement is making the same as what I"m making waging from home
fuck me I need some juicy divvies
Are dividends a boomer investment? Boomers seem to me to be the generation who started us on the short term, stock-flipping speculation culture we have today. Dividends strike me as more old school. Like pre-Silent Generation old.
So you know, when someone makes that kind of money on unemployment it really means that they work a job that makes more than that.
t. Chicago pipefitter.
that's fair
also by your logic why can't companies buy crazy call options on their stock with billions of dollars
like some crazy strike calls that create huge unusual activity and makes others want to buy and inflate their stock price?
which just brings us back to national socialism IMO, I am more of /poltard than a /biztard so I am biased.
>also by your logic why can't companies buy crazy call options on their stock with billions of dollars
I would assume a company trading derivatives on itself is illegal due to insider trading. Also it would be very irresponsible from a risk-adjusted return point of view. Corporate buybacks are an operation to reduce outstanding shares.
?
This has nothing to do with political ideologies. We're talking about operations available to corporations to give back value to their shareholders. You don't have to inject political ideologies into every conversation.
I wasn't it was more a comment about the tard shitting on me
but i think political ideologies inform economic systems, which is what is being discussed here.
The definition of shareholders is pretty vague, the public if being sold something are shareholders, at least thats what my retarded biz degree was trying to teach. Regardless in the long run if your community and way of life is destroyed it doesn't matter if your a shareholder or not you holding a bag of money surrounded by a shit system. Ya this is biz tho, so ultimately.. How do we profit off of this?
This gets funnier every time it's posted, just like my favorite Reddit memes
Upboated kind stranger!
> I'm the biggest capitalist in the world!
> But corporate boards can't make too much money
> And we should regulate markets to fuel innovation!
My head hurts.
>immoral libertarian cuck
my cock hurts
Buyback value should be capped at dividend value. Not allowing buybacks ever would mean companies always dilute over time, but pegging buybacks to dividends means everyone benefits
Jesus fucking christ, how retarded can you be? Read that quote again, and tell me it is pro-interfering with markets, no matter how well intentioned. What you all believe to be the evils of capitalism are the results of some absurd regulations established 10 years prior which disrupts market activity. Is that to say it should be a free for all with polluting, and safety violations? No, you be common fucking sensible about the regulations and keep them to shit like that. You don't forbid stock buy backs because it's some imagined evil. If a company wisely uses a buyback, it will benefit them and their investors will benefit. If they use it poorly, they will suffer as a result both on that front, and by losing out on investors in the aftermath. Where did all of you cucks come from?