Why stock buybacks soared at the end of 2018

Marielle Segarra May 2, 2019
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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.

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