Oct 9, 2019
Since the 2008 financial crisis stock buybacks have been at historically elevated levels. These levels have accelerated at an even greater pace since the Trump Tax cuts. In this episode we explain what stock buybacks are and the consequences of this poorly understood corporate policy.
Topics include:
What stock buybacks are and how they work
A short history on stock buybacks
Decrease in stock ownership by households and individuals
Majority of stocks owned by wealthiest Americans
Executive compensation packages
Margin and corporate debt to GDP at all time highs
Unintended consequences of stock buyback policy
Links:
https://realinvestmentadvice.com/wp-content/uploads/2019/04/Stock-Buybacks-2019.png
https://www.investopedia.com/articles/02/041702.asp
https://finance.yahoo.com/news/7-reasons-stock-buybacks-illegal-172253787.html
https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx
https://www.nytimes.com/2018/02/26/business/tax-cuts-share-buybacks-corporate.html?module=inline
https://www.nytimes.com/2019/02/25/business/stock-market-buybacks.html