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When a company makes a Some Girls Go Mudding And Drink To Much It’S Me I’M Some Girls Shirt profit they can either reinvest or pay a dividend to shareholders. A stock in theory represents the expected value of that portion of a company’s dividends over time. If a company invest in itself with a stock buyback they are decreasing the number of shares that are entitled to a share of profit, thus increasing the dividend payment and with it the value of their stock (larger slices of the same pie). Except the companies don’t ever dump. Well, the CEO usually does, as a lot of his salary comes from stock options. The company just goes bust and waits for Uncle Sugar to bail them out.

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Also, the exec compensation Some Girls Go Mudding And Drink To Much It’S Me I’M Some Girls Shirt package is mostly stock, so if the company does buybacks, the stick price increases, and the compensation package is worth wayyyy more now. From what I understand, it’s basically when a company uses its own money to buy their own stock from the open market. It gives the company more ownership of itself, and increases the price of the remaining shares in the marketplace (simply because there’s less of them). All of that is correct, but I think the most important part for the economy as a whole is that it’s cash that could have been spent in other more useful areas: R&D, expansion, employee benefits, product quality.

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