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Stock buybacks

Moody’s criticizes buyback financing

By John Schroy, on July 18th, 2006 | Leave a comment

According to the WSJ, a managing director of Moody’s said, “We think issuing debt to repurchase stock or pay dividends is not a good idea — that doesn’t strike us as conservative financial policy.”

In such operations, investors loan money to companies that transfer borrowed funds to shareholders who have no liability or interest in ever paying them back!

July 18th, 2006 | Print Article | Email Article Email Article | Category: Stock Buybacks | Leave a comment | Short url

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2010-11-12 16:03