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Comment by notyourwork

21 hours ago

Nothing directly, it just sounds bad at face value.

'Stock manipulation is cool, especially when you change executives pay structure to be based purely on said manipulation. Totally creates healthy incentives not perverse ones.'

  • Sorry, buy backs are not stock manipulation. Let's step back from emotions and political skew. A company is able to take their capital and deploy it how they see fit. This can include purchasing percentage ownership of their company back from stockholders. Whether or not you agree doesn't make it manipulation in the general sense. It's just a way for a company to use their money.

    • Why do they repurchase the stock? In order to impact the stock's value (also known as manipulating it's value). That is the definition of stock manipulation. No emotions involved, no need for the passive aggressive attack that I'm somehow being emotional.

      It's not just a way for a company to use their money. It is a company intentionally using funds for stock manipulation, many times by executives who directly benefit from said manipulation. Companies even take out loans purely to re-purchase stock.

  • It’s a way to return money to share holders.

    • By manipulating the value of the stock that shareholders. In order to do what you claim it does, it has to.... manipulate the stocks value, aka stock manipulations. You give a distinction without a difference.

      And shareholders only 'benefit' from this return if they sell their stock (ie give up being stock holders) versus the traditional method where stock holders receive and dividend and maintain their stock ownership. A dividend benefits all stock holdres, stock manipulation only benefits those that sell, a smaller arbitrary subset. Why chose a 'return' method that is only for some investors?