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To: posthumousone who wrote (77076)3/8/2001 10:18:30 AM
From: pater tenebrarum  Read Replies (1) | Respond to of 436258
 
they're not obligated to do anything. nor do they have to do it at a certain price, and yes, it sure is a tool to prop up prices. contrary to popular misconceptions the motivation behind buybacks is usually NOT the desire to help all those poor shareholders out there, but to bring managements stock options home.



To: posthumousone who wrote (77076)3/8/2001 2:54:29 PM
From: John Graybill  Respond to of 436258
 
As somebody (Don LLoyd?) wrote earlier, a company buying their stock makes sense only when it's for the same reason anybody would buy that company's stock -- when they think it's the best investment they can make. If they're buying it back so there's fewer shares in the earnings-per-share calculation, a la IBM, that's no good.