The Securities and Exchange Commission (SEC) moved to curtail the use of stock buybacks, drawing much criticism from corporate lobbyists. The regulator on May 3 announced changes to share-repurchase disclosure rules that would increase transparency, competition, and efficiency in the $25 trillion marketplace for hedge fund and private equity fund advisors. The new updates will amend Form…
SEC Moves to Curb Stock Buybacks, Drawing Criticism From Companies and Investors
Let’s Rethink Stock Buybacks—and Drop Biden’s Proposed Excise Tax
Commentary Bloomberg, citing private newsletter publisher Birinyi Associates, reports that “announced buybacks more than tripled (in January) to $132 billion from a year ago, reaching the highest total ever to start a year.” For those of us who follow these things, it’s not surprising: the record level of stock buybacks comes amid an earnings season that has been…
Chinese Listed Companies Are Buying Back Shares, Incurring Massive Losses
Amid a massive foreign capital exodus, Chinese listed companies have been buying back their own shares and incurring huge losses. More than 1,300 listed companies and various equity funds in China have made frequent share buybacks in China A-shares and Hong Kong stocks this year, with a sharp peak at the end of October. According…
White House Budget Plan Seeks to Add Restrictions on Corporate Stock Buybacks
President Joe Biden’s administration is targeting U.S. corporate stock buybacks in his 2023 budget plan announced on March 28 in an effort to discourage businesses from using profits to “enrich executives.” Companies buying back their own shares on the open market is not a new phenomenon, with a record $319 billion of new share buybacks having been authorized so far…
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