Sirwalterraleigh
Premium Member
Great description…The simplistic answer to stock buybacks is that the board and C suite own a lot of stock, they are in contact with funds and equity firms that hold lots and lots more so buying back stock increases their holding's value directly while debt is not a bad thing to have. It allows you to be flexible in where you deploy your capital. Dumping debt will strengthen the balance sheet but the cost of the debt has to be weighed against potential returns it can generate.
The name of the game is please the stockholders and line your own pockets along the way
Or if you want to go Simple: it’s cooking your books