A shareholder deploying dividend proceeds to buy additional shares in the same company is equivalent to a shareholder not tendering for buyback, while dividend encashed for other pursuits is equivalent to a shareholder tendering his / her shares.
Inverting, if buybacks / dividends have no difference in the hand of the shareholder, why would they be different to a company? Only due to the quantum?
Each shareholder's free to do stupid things with his money on his own volition, like buying overvalued stock. A few owners or managers aren't free to do so with company money that doesn't (entirely) belong to them.
Shortchanging small, uninformed shareholders at the time of worst crises in a century !!
A shareholder deploying dividend proceeds to buy additional shares in the same company is equivalent to a shareholder not tendering for buyback, while dividend encashed for other pursuits is equivalent to a shareholder tendering his / her shares.
Inverting, if buybacks / dividends have no difference in the hand of the shareholder, why would they be different to a company? Only due to the quantum?
Each shareholder's free to do stupid things with his money on his own volition, like buying overvalued stock. A few owners or managers aren't free to do so with company money that doesn't (entirely) belong to them.
yes, fair point, thanks!
"Value destruction by buying back overvalued stock..." An investor can simply tender in the buyback to avoid this issue, no?
Value destruction is for company