Share buybacks are wrongfully under attack. Critics of share buybacks claim that these transactions — which involve a company purchasing its own stock from shareholders — divert resources away from employees, investments and R&D. The myth of price manipulationPoliticians claim that companies use share buybacks to manipulate stock prices, permitting executives to unload shares at inflated prices. Can companies actually manipulate prices with share buybacks? Finally, if companies are manipulating stock prices through buybacks, then prices should revert in the long run.

Source: The Edge Markets September 09, 2022 03:33 UTC