Floyd Norris has an article in the New York Times on stock buybacks: http://www.nytimes.com/2009/09/19/business/19charts.html?scp=1&sq=buybacks&st=Search He notes that buybacks are high when stock prices are high and that they fall off when stock prices are low. His conclusion is that this is irrational because companies should be buying back more stock when the price is low and less when the stock is high. While there is a point to his argument, there are two points he is missing:
Buybacks and Stock Prices..
Buybacks and Stock Prices..
Buybacks and Stock Prices..
Floyd Norris has an article in the New York Times on stock buybacks: http://www.nytimes.com/2009/09/19/business/19charts.html?scp=1&sq=buybacks&st=Search He notes that buybacks are high when stock prices are high and that they fall off when stock prices are low. His conclusion is that this is irrational because companies should be buying back more stock when the price is low and less when the stock is high. While there is a point to his argument, there are two points he is missing: