Category: stocks
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Share buybacks!
A-ha! In my previous post on owning stocks, I had completely forgotten about stock buybacks, when the company uses excess cash to buy outstanding shares. In this sense, the company itself is placing real value on the stocks, and this gives them some intrinsic value other than (a) producing dividends or (b) liquidation. The traditional…
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What’s the purpose of owning stocks?
Something I was thinking about the other day…what is the value of stock in a publicly traded company these days? According to the wise people at wikipedia: A share of stock is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested…