emd,
@emd@cosocial.ca avatar

Stock buybacks should be illegal.

You wanna increase your stock price? Actually increase your value. https://masto.ai/@rbreich/112423899192330749

mpjgregoire,
@mpjgregoire@cosocial.ca avatar

@emd Should dividends be illegal too?

emd,
@emd@cosocial.ca avatar

@mpjgregoire nope, cuz that money comes from actual value.

emd,
@emd@cosocial.ca avatar

@mpjgregoire buybacks come from cash, either put it back into the business or return it to the shareholders (via dividends)

mpjgregoire,
@mpjgregoire@cosocial.ca avatar

@emd Stock buybacks and dividends are essentially equivalent ways of transferring money to shareholders. The major difference is in how the tax system treats capital gains vs. dividend income.

emd,
@emd@cosocial.ca avatar

@mpjgregoire well whatever needs to change so that we stop seeing stories like this. Layoffs then buybacks, buybacks then problems.

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