News Focus
News Focus
icon url

mcptrman

05/16/10 10:52 AM

#53519 RE: buysellhold #53516

2 things from wikipedia caught my attention

1) Another reason why executives, in particular, may prefer share buybacks is that Executive compensation is often tied to executives' ability to meet earnings per share targets.

2) Share repurchases avoid the accumulation of excessive amounts of cash in the corporation. Companies with strong cash generation and limited needs for capital spending will accumulate cash on the balance sheet, which makes the company a more attractive target for takeover,

All the reasons in the definition appeared positive to me but these 2 stood out the most.

Thank you provencial