Corporate America gives out a record $1 trillion in stock buybacks

[Yo_Mama_Been_Loggin]

New York (CNN Business)Corporate America celebrated the first full year under the new tax law by rolling out a record-setting $1 trillion of stock buybacks.

US companies, led by Lowe's (LOW) and AbbVie (ABBV), rewarded shareholders by unveiling $34.4 billion in buybacks last week, according to TrimTabs Investment Research. That lifted repurchase announcements above $1 trillion for the first time ever, TrimTabs said, exceeding the prior record of $781 billion set in 2015.

And the trend continued on Monday. Johnson & Johnson (JNJ), mired in a controversy over its iconic baby powder product, announced a $5 billion buyback. Boeing (BA) also ramped up its buyback program.

The buyback boom has been fueled by strong economic growth and the corporate tax overhaul that was signed into law a year ago.

https://www.cnn.com/2018/12/17/investing/stock-buybacks-trillion-dollars/index.html

Too bad the buy backs haven't really helped even from a shareholder's perspective.

[PSPS]

1. Actually, the buy backs are a boon to (certain) shareholders.

Here's the way it works:

> The fat cats at the corporation get most of their compensation via stocks and options
> Share buybacks drive the price of each share much higher
> $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ almost tax-free

[Yo_Mama_Been_Loggin]

2. No

Look at the stocks listed. They didn't all do well.

[Scruffy1]

3. In an efficent market stock buy backs don't affect the price.

Let's say it was put into the corporate treasury. There will still be the same number of shares. If it retired it is written off at market with the loss spread over the trading shares.

[A HERETIC I AM]

4. Not trying to be snide here, but I'm curious about your understanding of what you posted.

Here's the way it works:

> The fat cats at the corporation get most of their compensation via stocks and options
> Share buybacks drive the price of each share much higher
> $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ almost tax-free

First....how do you know point one? I mean, from where did you get that information?

Second, "Much higher"?!? As post #2 suggests, that isn't always the case.

So when you say "The fat cats at the corporation get most of their compensation via stocks and options"......


What EXACTLY do you think that means?