Help power Marketplace this winter when you support the show today. Donate Now!

Why stock buybacks soared at the end of 2018

Marielle Segarra May 2, 2019
HTML EMBED:
COPY
Stocks have rallied in November, with the Dow reaching a milestone level Tuesday. Spencer Platt/Getty Images

Why stock buybacks soared at the end of 2018

Marielle Segarra May 2, 2019
Stocks have rallied in November, with the Dow reaching a milestone level Tuesday. Spencer Platt/Getty Images
HTML EMBED:
COPY

A report from Moody’s says stock buybacks jumped by more than 60% in the second half of last year for 100 of the largest American companies. There are several reasons why the buybacks — a result of the tax cuts corporations received in 2018 — escalated. Moody’s says the buyback frenzy could create an expectation on the part of shareholders: that the buybacks will continue even if things go south.

Click the audio player above to hear the full story.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.