“We can’t think of anything constructive to do with the company’s money, so we’re giving it back to you, dear shareholders.” Few boards would put it quite like that, but it is the logic that propels companies to buy back their own shares.
Buying back the farm
“We can’t think of anything constructive to do with the company’s money, so we’re giving it back to you, dear shareholders.” Few boards would put it quite like that, but it is the logic that propels companies to buy back their own shares.