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| Subject: Stock Buybacks In some countries, including the United States and the United Kingdom, corporations can buy back their own stock in a share repurchase, also known as a stock repurchase or share buyback. There has been a meteoric rise in the use of share repurchases in the U.S. in the past twenty years, from $5b in 1980 to $349b in 2005. A share repurchase distributes cash to existing shareholders in exchange for a fraction of the firm’s outstanding equity. That is, cash is exchanged for a reduction in the number of shares outstanding. The firm either retires the shares or keeps them as treasury stock, available for re-issuance. Under U.S. corporate law there are five primary methods of stock repurchase: open market, private negotiations, repurchase put rights, and two variants of self-tender repurchase, a fixed price tender offer and a Dutch auction. (Wikipedia Feb 2010) US Bond Market By John Schroy, on November 19th, 2006 |  Leave a comment  The Democratic Party and its supporters have indicated a willingness to enact legislation that will reduce demand for bonds, while increasing supply: a recipe for lower bond prices and higher yields. Questionable economic policies are expected to include support for Fannie Mae, protectionist trade measures, and large pensions for unionized civil servants. November 19th, 2006 | Print Article |  Email Article |  Topics: Baby Boomers, Ben Bernanke, Democratic Party, Fannie Mae, George Soros, Interest Rates, labor unions, minimum wage, municipal bonds, pension plans, protectionism, Republican Party, Stock Buybacks, unemployment, US taxation | Category: US Politics | Leave a comment |  Short urlStock buybacks By John Schroy, on November 5th, 2006 | Leave a comment  Three-card Monte is a time-honored, street-corner con game the uses misdirection, sleight of hand, and shills to separate victims from their money. The Great EPS Scam is a similar con game, using Wall Street ‘experts’ as shills to distract investors with promises of “enhanced EPS”, while corporate flim flam artists misdirect billions of shareholder money into their own pockets through the artifice of stock options. November 5th, 2006 | Print Article | Email Article | Topics: Charles Schwab, dividends, earnings-per-share, fractional shares, fraud, investment advisor, reverse stock split, Stock Buybacks, US SEC | Category: Stock Buybacks | Leave a comment | Short urlSecurities fraud By John Schroy, on November 4th, 2006 | 3 comments  A basic principle of US security law is that material misstatements and omissions of fact in connection with the purchase and sale of any security are violations to be sanctioned. Corporations have argued that stock buybacks are equivalent to dividends. This article explains why this is not true and why suggesting buyback-dividend equivalency may constitute fraud. November 4th, 2006 | Print Article | Email Article | Topics: class-action litigation, Corporate Governance, dividends, SEC Rule 10b-18, Stock Buybacks, US SEC | Category: Stock Buybacks, featured | 3 comments | Short urlFeatured articles on inside pages
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