What Are Stock Buybacks and Why Are There Stock Buybacks or Dividends: What's 1 day ago   03:48

Wall Street Journal
Lawmakers from both sides of the aisle have introduced proposals to restrict stock buybacks. WSJ’s Ken Brown explains the basics of buybacks and the economics of the plans. Illustration: Laura Kammermann

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Comments 94 Comments

I love to hear you talk about companies borrow billions of dollars to buy their stocks, CEOs gets big bonuses. CEOs then quite their jobs' then sell the own stocks at the peak. This scheme is only benefit the rich and it is fraudulent.
eprasad ji
Buybacks should be stopped. Dividends payment should be encouraged
Workers should buy stock
Moksha Mahey
Can we not have government interfere in consentful transactions
Dakota M
I don't know about everyone else but I've made a lot more money the past couple years. Got my house paid off a year earlier, but my hopefully future fiance a nicer ring and am now starting invest some of my money. Rich people are more then happy to give their money to other people they just want something in return such as labor or partnership in their companies (buying stocks). Etc Which seems fair to me I don't give my money to anyone without getting something in return, well maybe taxes but that's a different discussion.
Nicholas A.
Tami Baldwin from WI was the person who was for this. I guess those 2 took it up.
DemocRATS are willing to strangle the economy in order to get closer to a communist state. Why do these people always want to dictate what other people do with their money?!
Honest Business
He is selling some snake oil.
Stock buy backs are the same as dividends.
Atheos Nous
Missing in this presentation is perhaps the real motivation for corporate buybacks. Management compensation is often based on earnings per share numbers. Buybacks is a way to boost EPS without real company performance. Profits should go toward R&D, investments, acquisitions, training and increased dividends, *not* buybacks. In the most egregious cases, corporations have borrowed trillions to buyback their stocks, a disservice to long term shareholders.
Get to the point jesus.
If growth raises wages, then why have wages been stagnant for so long? Clearly this thinking is false.
Buyback = Manipulation
neymar the legend
we need subtitles
Manzoor Ali
Democrats are trying to destroy the American dream we all want for ourselves. You try and stop investors from cashing out their OWN money. You stop investment. Democrats are hellbent on socialism for all but the ruling elite class.
Shilpan Shukla
Money sitting in bank accounts help the bank to loan other
Edison Cyci
I expected nothing from WSJ and still got disappointed. Can you make it MORE obvious that you are the PR firm for Bezos and Amazon?
T Douglas
You failed to mention higher medical costs companies are forced to bare. Total earns have skyrocked upwards for employees b/c corporations have to carry those costs. Very lazy and biased report.
Wilfred Peake
increase capital gains tax simple
Ann Onymous
Although prohibiting stock buy backs or trying to force employers to pay higher wages is a stupid policy (because it would cause inflation and hinder capital formation and allocation) this video doesn't point that out and instead gets really circular/conclusory about how prohibiting or regulating stock buy backs would somehow go against "tradition". Newsflash: abolishing literal slavery went against "tradition". I kinda expect better from WSJ than conclusory reasoning which ignores the perfectly obvious economic problem with attempts to regulate stock buybacks.
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Stock Buybacks or Dividends: What's What Are Stock Buybacks and Why Are There 1 day ago   01:48

April 2 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at dividend increases versus buyback announcements. He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

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