The two are not related.
A split has no real effect, 2 for 1 is twice as many outstanding shares for 1/2 the price. It is used by some some companies just for publicity, sometimes it creates interest in the stock among the uniformed. It does however, make the price more "bite-sized", a more marketable price, it also increases the commissions paid to a fee broker.
In intel's case, since the stock is already widely known, it may have no publicity effect, at all.
A repurchase normally, if done, and a lot of companies announce a repurchase but never do it, is beneficial, if it is the companies best use of its money. It actually does increase the value of the remaining outstanding shares.
The tax gimmick is this, stock option grants dont decrease current earnings, the buyback doesn't effect current earnings, so the employees get compensated without reducing current earnings.
Maybe larry thinks the stock is too low. Don't know, haven't reviewed this buyback.
Duke |
