341
4 Big Tech giants have plowed over $1 trillion into stock buybacks in 10 years — more than Tesla or Meta's entire market value
(markets.businessinsider.com)
this post was submitted on 30 Aug 2023
341 points (96.7% liked)
Technology
58135 readers
4802 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
The companies value doesn't change, but shareholders hold X number of stock, so to them their portfolio improves.
When companies split their stock, it's to keep the price at a reasonable amount for people to buy - when 1 stock is worth $100 it makes the "minimum buy-in" very high. If the stock is split 1:10, the share price drops by 10x but all shareholders get 10x more share, so it doesn't affect them much.
Ultimately listed companies work for shareholders' benefit.
Neither of those are good options.