[viklove]

> 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?

[volak]

Repurchasing shares is what companies do with profits they cannot effectively leverage into new investments. I suggest you read https://en.wikipedia.org/wiki/Share_repurchase

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

[viklove]

> Businesses operate on revenue and margin and companies like airlines can't justify using even 1% of its revenue to "save" for rainy days.

So you're admitting that this statement you made is just patently false, thanks.