It looks like you're new here. If you want to get involved, click one of these buttons!
Article:...the one thing analysts don't expect Apple to invest in with its payday is new American jobs.
Why Uncle Sam shouldn't finance stock buybacks. The biggest reason these inevitable buybacks and dividends are "bad" is because they will do nothing to create American jobs – the sole reason politicians argue the tax holiday is necessary.
Even under normal situations stock buybacks can be a bad idea. It's not uncommon for management buy back stock when it's overvalued, or use repurchases as a tool to reach earnings per share goals that earn them fat bonuses. In both cases, buybacks aren't even in the best interest of the shareholder, much less the taxpayer.
And even when buybacks are executed perfectly, they simply don't develop or improve the company, fund innovations and discoveries, or directly create a single job.
They enrich shareholders, who are already well off. That, in turn, contributes to more income inequality, which is itself bad for the economy.
© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla