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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: lawdog who wrote (35355)	5/11/2000 7:45:00 AM
From: GVTucker	Respond to of 77400

lawdog, RE: The cash used for the buyback causes a temp. real increase in the share price by reducing dilution. This is offset when the shares are distributed and you are left with no real economic impact. Share buybacks and share issuances are two distinct processes. A share buyback increases shareholder equity, a share issuance decreases shareholder equity. The fact that an issuance of shares dilutes shareholders does not change the fact that a share buyback is a benefit to shareholders.