Complaining About Stock Buybacks FEELS Nice. But To Many, It’s The Whole Point Of The System.

Sometimes, “drawing attention to a problem” doesn’t really do a whole hell of a lot.

To start this article off, let me go ask ChatGPT “What is a stock buyback?” Let’s see what we get.

ChatGPT weighs in

A stock buyback, also known as a share repurchase, is when a company buys back its own shares from the open market. This means that the company is purchasing its own outstanding shares from existing shareholders, reducing the number of shares available in the market.

There are a few reasons why a company might choose to buy back its own shares. One reason is to return cash to shareholders. By reducing the number of shares outstanding, the company can increase the value of each remaining share, benefiting shareholders who continue to hold onto their shares. Additionally, a stock buyback can also be seen as a way for a company to signal to investors that it believes its shares are undervalued.

Another reason for a company to buy back its own shares is to improve its financial ratios. When a company repurchases shares, it reduces the total number of outstanding shares, which can make its earnings per share (EPS) look more…