> Businesses operate on revenue and margin and companies like airlines can't justify using even 1% of its revenue to "save" for rainy days.
Huh. Where did they get the money for the stock buybacks they initiated last year?
Huh. Where did they get the money for the stock buybacks they initiated last year?
But to sum up: if you are a company with $1 million on hand at the end of the year you have to disperse it somehow.
- If you put it in a bank account you'll earn 0.2% interest on your "investment"
- If you pay out dividends your shareholders will earn 1-2% (estimate) on their investments
- If you buy back your own stock your shareholders can see 4-5% (estimate) on their investments + you have shares you can award to employees in the form of options or direct without diluting the market
The number 1 factor in your decision? Taxes. Which option pays the least tax? Option 3
So you're admitting that this statement you made is just patently false, thanks.