Why do companies do stock buybacks? Yahoo Finance explains

Stock buybacks are when a company buys back its share to reduce the number of outstanding shares on the market, increasing the ownership of the stakeholder. It can impact share price and give off multiple signals about the strength of a company when they are announced.
Yahoo Finance's Julie Hyman joins Wealth! to break down exactly what are stock buybacks and what investors need to know when companies announce these programs.

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[tahirisaid]

Fear is a dangerous component, hindering us from taking the bold steps we need in other to reach our goals. Nobody can become financially successful overnight. They put in background work but we tend to see the finished part..

[bitiajoseph]

This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit high, today I am more than 60% down!

[wallstreettrader]

Now let's discuss the real reasons for stock buybacks:

1. Less available share float (self-induced scarcity) to increase demand and, therefore shareprice, artificially.

2. Easier to manipulate the share price using promoters and media propaganda.

You're welcome.

[SSModi]

Stock buy back is a promise not a guarantee. Good time to sell on the news.

[larrywu]

The significant buybacks occur for three main reasons: Firstly, to inflate stock prices and conceal the actual state of affairs. Secondly, because companies are neglecting long-term research and development due to a lack of vision. And thirdly, to enable CEOs and top-level management to cash in on the pumped-up prices.

[stevechance]

Quick answer: It increases CEO compensation. Why do companies do anything in 2024.

[unaldurmaz]

Buybacks are bs. Warren Buffett never had done it tor for example. This is why i sold appl

[phuongha]

The government should buy back all the money it printed out. That way each dollar will be worth more.

[kaizen]

Buybacks are a way of enriching the already rich top 1%.