The Price of Profits

Stock buybacks break records, prop up markets

Sabri Ben-Achour Jul 13, 2016
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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

Sabri Ben-Achour 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. 

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