Corporate stock buybacks, sometimes called share repurchases, occur when a company uses its cash to repurchase shares from the open market. It allows investors to sell their shares of stock while allowing the remaining investors to increase their equity. Proponents of the corporate buybacks say it’s a good way to help investors sell their shares without hurting the stock price for other stockholders. Critics see it as a way to inflate stock prices. Learn about the potential benefits and drawbacks of stock buybacks.
Subscribe:
Check out Investor Insights for daily livestreamed webcasts with TD Ameritrade education coaches:
TD Ameritrade is where smart investors get smarter. We post educational videos that bring investing and finance topics back down to earth weekly. Have a question or topic suggestion? Let us know.
Connect with TD Ameritrade:
Facebook:
Twitter:
Open an account with TD Ameritrade:
#tdameritrade #stockinvesting #investing
source
