Stock Explore’s Mid-Week Market Melt
What are Stock Buybacks?
☀️Here comes the Sun: The first day of spring ticked upward, with the S&P 500 +1.3% yesterday!
What are Stock Buybacks?
Stock Buybacks are another way to return cash to shareholders. If you have been following along, Dividends are another method to return cash to shareholders.
A stock buyback occurs when the company’s executives buys stock back from public shareholders (you & me) or the market and retains a larger share of ownership.
💰This gives money back to the public shareholders and, in return, helps increase the value of the stock.
🏃♀️Companies that buyback stocks appear financially healthy, as it is generally a sign that the executives are commited to growing the business and want to continue to save their weath within the business.
Stock Bubacks of the S&P 500 (largest 500 comapnies in the US) increased +4.6% from 2021 to 2022. This is the largest amount of stock buybacks ever!
S&P 500 buybacks totaled $922.7 billion in 2022, up from $881.7 billion in 2021. (WSJ)
👩🏫 Stock Buybacks Worksheets
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