The Debate Over Stock Buybacks, Explained | WSJ

Companies on the S&P 500 have poured more than $5.3 trillion into repurchasing their own shares since 2010. WSJ explains how stock buybacks work, and why there's debate over whether or not they're good for the economy.

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[AANDYG]

Jan 2020: "Buybacks are now a big part of the landscape of American finance. There is no sign that is about to change"

Oh how quickly things can change.

[sherryie]

I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.

[gshak]

Buybacks help partially to explain this extreme bull run we’ve seen. Also makes me nervous that a lot of stock prices are propped up while companies are neglecting R&D and employee training.

[mialomit]

Oh the irony of this video being recommended to me, as corporations are now asking for bailouts to get back their $ back to early 2020 prices

[sarfrazahmed]

Worker training is the biggest issue in any industry right now.
Everyone is willing to hire an expert or skilled worker but not willing to train one from within or from local work force.

[presley]

Invest in stocks is a great way to invest your money. The team is constantly checking the market for changes and make sure that you are always informed about the best time to invest. As a result, I have made more money than ever before, and I don't have to manage my portfolio on my own! Invest in stocks, it's worth it!

[lascannon]

And now when companies need cash, they are now having to seek government bailouts... if only companies saved some of that money they use for buybacks...

[nargishoque]

I have an exam on this tomorrow. Perfect timing

[noirto]

Funny thing is when the company board vote for stock buybacks, they started to sell their shares... Great timing all things considered.

[christiantosumbung]

Buybacks is a lazy way to increase stock prices, instead of actually growing the company.

[camwalker]

Wealth from stock buybacks just dissapeared in 3 weeks, so ya, maybe not the Plutocracy's greatest idea.

[vitas]

It sounds like a company can manipulate stock metrics to influence how shareholders are able to view their performance...

[gdc]

They used to be illegal - for good reasons.

[Camelotsmoon]

The glorious trickle down economy right here in this video.

[matthewcurrie]

Nevertheless, financial freedom should be the goal of anyone involved in trading stock.

[GuestYouTubeUser]

Building new factories? Lol You mean getting new contracts in China or Mexico?

[Davao]

It's amazing that among the options companies have with their stockpile of money, "giving back to their employees" was never even mentioned. Just wow

[ericp]

Shareholders love buy backs (speaking for myself) basically a dividend without having to pay taxes.

[loveanimals-]

We need a video on the "stock options" for executives.

[chrisgouger]

No stock buy backs are not good. Management puts a company into debt to artificial raise the stock price instead of investing in it's OP-EX or CAP-EX. This type of thing is making the U.S institutions 2nd rate.