Why do corporations buy back their own stock? What is the strategy in this?
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To add, there are several reasons to buy back stocks. One of them is for the company to take back some of the equity. Especially if they feel like the stock is undervalued, they can claw back the equity at a discount. One major criticism comes up when the topic comes up is when companies are given money from the government and they use it to buy back instead of use it for actually helpful things like keeping workers on or innovating. Imagine being advantaged in such a way and then taking actions to take back equity from the market so they can increase their share to take advantage of the continued benefits of that advantage.
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