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Technology Stocks : IBM
IBM 307.940.0%Dec 5 9:30 AM EST

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To: Mark Brophy who wrote (3026)5/3/1998 9:41:00 AM
From: Hsien W. Chang  Read Replies (2) of 8218
 
Can you explain to me the difference between stock repurchasing and paying out cash flow as dividend. IBM before 1993 was paying about $4.84/share in dividend. This was cut down to the present level after the change of management. Also about the same time IBM started the stock repurchase program. In either case the cash flow money was paid out. Do you mean that in the case of dividend pay out, the stockholders' equity is not reduced but it is reduced when a company repurchases its own stocks! Please help me to understand this. Thanks
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