What have you always wondered about the economy? Tell Us
The Price of Profits

Stock buybacks break records, prop up markets

Jul 13, 2016
HTML EMBED:
COPY
A trader works on the floor of the New York Stock Exchange, July 12, 2016 in New York City.  Drew Angerer/Getty Images
The Price of Profits

Stock buybacks break records, prop up markets

Jul 13, 2016
A trader works on the floor of the New York Stock Exchange, July 12, 2016 in New York City.  Drew Angerer/Getty Images
HTML EMBED:
COPY

The first quarter of 2016 saw more stock buybacks than at any time since late 2007, just before the recession – $166 billion dollars worth according to research firm Factset. The controversial practice is used to drive up a company’s stock prices, but some argue it is done at the cost of a company’s long-term health and rewards shareholders over all other stakeholders in a company. 

Click the audio player above to hear the full story.

Marketplace’s series, The Price of Profits, takes an in-depth look at the notion of shareholder value and stock buybacks. 

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.