January 24, 2008
Corporations Drop Stock Buybacks
Why aren't there any stock repurchase programs when investors could really use them? Corporations frequently buy their own shares in the open market as a way of maintaining the stock price, yet buybacks are down. A Wall St. Journal article suggests several reasons: corporations used up their available cash buying shares at more expensive prices, corporations are reluctant to spend cash in these times of financial crisis, buybacks are a sign of confidence in the market, which is lacking these days, there is no longer the need for defensive buybacks. WSJ, Where Have Buybacks Gone?
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