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0 pointsmaerF0x02y ago0 comments

No. Stock price requires higher per share values.

One can continuously grow a stock if they reduce the shares outstanding.

That being said iirc buy backs have notoriously all gone to executives. Essentially they buy back, and then award themselves options to re-dilute, but cannot readily find a source for that. So maybe incorrect.

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lotsofpulp2y ago

When a business does a stock buyback, the business receives the stock, not any executive(s).

The business might pay the executive with stock per the board approved compensation package, but a CEO does not wake up and say “I want to give myself 5M shares so let’s do a 5M share buyback”.

A buyback benefits all shareholders equally by reducing supply of the stock and therefore increasing its price.

maerF0x0OP2y ago

> the business receives the stock

correct. Hence my wording

> and then award themselves options to re-dilute

It's not that executives receive the bought back stock, but that their stock based compensation plans result in no net decrease in the amount of outstanding shares.

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