5 Things You Need to Know About U.S. Stock Buybacks

Stock buybacks are a wrong way to allocate financial resources in the U.S. Deeply wrong.

Photo by Rob on Unsplash

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Introduction

Profitable companies have plenty of options for how to spend the money they make:

• Increase pay for employees
• Invest in new projects
• Invest in capital infrastructure
• Save money for a rainy day (almost always a prudent move for any business)
• Give money to investors via cash dividends or stock buybacks