Hacker News new | ask | show | jobs
by rm_-rf_slash 2884 days ago
Big companies often waste too much shareholder money buying back stocks when prices are high. It serves them better in the long run to raise money they don’t need when their stock price is high, so when the market and stock price takes a downturn, they have more capital to allocate for their business while also buying back less expensive stock, rewarding investors doubly once the market picks up again.