Stock buyback is effectively just a dividend with a different tax implication: reducing the number of shares in circulation raises the ownership stake of the remaining shares
> Stock buyback is effectively just a dividend with a different tax implication
Not just different, it specifically a lower tax rate assuming that the stockholder has held long enough to use the long term capital gains tax rate (which lower than the dividend tax rate).
Not just different, it specifically a lower tax rate assuming that the stockholder has held long enough to use the long term capital gains tax rate (which lower than the dividend tax rate).