1,047 karma · joined October 16, 2008
Only if those investments will create more profit. If capital cannot be allocated effectively (i.e. a company that returns $1 for every extra dollar invested above current ability) then the profit should be returned to the shareholders.
> We have corporations that lose money every single day of their entire existence, but manage to drive their share prices by tax scams, accounting fraud, government subsidies, and share buybacks financed with debt the would not be available to them but for the existence of the scams, frauds, and government subsidies.
Sure there are companies like this.
> at the expense of a tax base they do not participate in so should logically be shut out of.
I mean, you shouldn't pay taxes if you lose money... Shareholders/employees still pay taxes here.
> When a corporation uses that money to buy back shares the money is effectively destroyed by being circulated among a financial class that has (mostly) bribed their way out of the tax system.
Say we have 100 shares of a company. The company makes $100 per year. Each of those shares own $1 per year of the company. If they company pays $50 to buy back 50 shares then each of the remaining shares owns $2 of that $100. I mean, the market still decides what the stocks are worth, but eventually most if not all stocks get valued fairly. How is the money being destroyed?
Again, if the company cannot invest the money profitably to make more money, it should return it to the owners of the company. Are you against private ownership?
> Hence, any money used for share buybacks should logically be treated as net income for the company in question's next filing.
Why?
Taxes should be taken into account in calculating where the best ROI would be here. Obviously it changes when you would return profit to shareholders.
Creditworthiness is judged based on history, not on age or race etc. I.e. egalitarianism.
If your history is bad, lower limit etc.
The number of police killings are a very small number. This is blatantly obvious to anyone who cares about the truth.
And I'm strongly against police brutality.
But you don't solve that by being ignorant about what actually happened in reality.
Why? Tyranny? (As per the rest of your note).
We shouldn't tolerate either if innocent.
Because money is finite? Not every research grant gets funded. So let's start with the most promising ones?
Funding vaccines that are not meeting standards should be dropped so that standards can be met. These companies don't need money for R&D, they have enough and can recoup it if they create a product that the market wants.
Don't subsidize drugs/vaccines that don't work.
There are 100+ vaccines being worked on. We're fine.
I'm replying to a comment saying they should use their cash reserve to buy bitcoin instead of dividends/buybacks.
And yes, they can sell it and have some level of "float" to support crypto buy/sell exchange. But the comment was a hodl comment to "make them more money."