In Defense of Higher Stock Prices

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  1. Bill says:

    I think the major reason for the stock repurchases was not because the CEOs thought it was a good buy. I believe they didn’t have any place else to spend it. It was a better buy than alternatives like investing in new products, new production machinery, new plants, any of which may have meant hiring new employees. Buying stock helps increase shareholders values but also is like putting money in the bank for future stock offerings when the need for cash is going to be important.


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