← Back to context

Comment by cheschire

17 hours ago

Buying back shares it sold at a lower price, right? The lifecycle of a share starts with the transfer of money to a company in exchange for a share. It ends with a buy back, ideally at a higher price.

But still, at the beginning it is a transfer into the company’s coffers.

7 comments

cheschire

Reply
whall6  17 hours ago

The life cycle of a share starts at IPO. The S&P 500 does not add companies to its index until at least 12 months after IPO.

Also, Meta issued 180 MM new shares at $38/share at IPO. That’s ~$7 Bn. Which is less than 1/4th of what they repurchased just last year.

Between share repurchases and dividends, S&P 500 companies are putting money into the markets, not pulling it out.