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Technology Stocks : IBM
IBM 289.94-2.5%Nov 18 3:59 PM EST

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To: Robert Scott Diver who wrote (4058)10/23/1998 6:57:00 AM
From: Skeeter Bug  Read Replies (1) of 8218
 
robert, let's take this to the rudimentary level. if ibm hadn't spent $500 million buying back stock would they have needed to increase debt $500 million for operations?

let's take this slooooooooooowly.

no buy back = $500 million dollars for something else (like operations).

$500 million available for operations means there is no need to borrow $500 million to fund operations.

no buy back = no borrow.

buyback = borrow.

simple enough yet?
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