Why are stock buybacks so controversial?
In: Economics
There’s a balance between having too much money, thereby eroding shareholder value (Google is particularly guilty of this), and having too little cash to help get you through the bad times. Stock buybacks are all about returning value to shareholders, at the expense of cash on hand.
Stock buybacks aren’t inherently a bad thing, but if you do it too much, you can be in big trouble if things go negatively quickly.
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