[kgwgk]

> Companies don't use debt to buy stock.

Sure they do.

Edit: https://www.bloomberg.com/news/articles/2019-08-08/companies...

By the way, the claim “Taking on the debt to do that would depress the stock price“ doesn’t seem correct. The influence of leverage on valuation is complex and depends on the cost of debt and equity, tax shielding considerations, the increase in risk due to the financial leverage... and essentially on what the money is going to be used for.

[rbavocadotree]

All the time in fact. There's been $5 trillion in stock buybacks by US companies in the last decade. Most of it through leveraged buybacks.

It often makes more sense to use debt than cash for buybacks.