Adam Lett

@nikitonsky@mastodon.online I’ve had many of the same thoughts, and created this Textmate theme: https://github.com/KaptajnKold/Minimal

@ballista11 @rbreich They may have that effect temporarily, because stock buybacks are considered a strong signal that the company’s management (who have the most knowledge about the market and the company’s position in it) believe that the stock is currently undervalued. But if the results don’t support this thesis, the stock will promptly drop back down. And as mentioned, there are many examples of companies whose stock drop following a buyback.

@ballista11 @rbreich A company cannot “make” the stock go up by buying back shares. All things being equal, the money it uses to buy back shares causes its value to diminish (it becomes a poorer company), which for the remaining stock holders is balanced by them owning a larger piece of company. In other words, the price of the individual shares is not affected. Sometimes a stock goes up following a buyback, but there are many examples of the opposite happening.