By Garvin Jabusch
“Lots of Wall Street analysts and investors like it when companies buy back their own stock. Such stock buybacks typically mean that the company is on solid financial footing and wants to reclaim more control over its own destiny, and for investors, these buybacks often mean a significant profit on their investments. (As a recent article on TheStreet.com happily put it, “What are stock buybacks? Here’s how they make you money.”) Yes, stock buybacks can make both shareholders and share sellers feel fat and happy. But from the perspective of a healthy capitalism, they couldn’t be more wrong.”
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