Submitted by lilly_kilgore t3_10phz45 in explainlikeimfive
Lemesplain t1_j6l15ng wrote
Reply to comment by bobjoylove in ELI5: What does it mean when a company buys back stocks and why is it frowned upon? by lilly_kilgore
To add on, occasionally there’s a public money angle that makes it even less appealing to the general public.
A company is failing, but deemed “too big to fail,” so Uncle Sam gives that company a bunch of cash to keep them running.
6 months later, the company is doing well again, has a ton of extra money, and starts doing buybacks. Meanwhile, all of the citizens whose taxes paid for that bailout get nothing.
Viewing a single comment thread. View all comments