Buybacks boost stock prices, increase management control
Article Abstract:
A stock buyback program can boost the value of a company's stock, can bring control of the company into private hands, and can provide stock for employee benefit programs. To determine whether a buyback is a sound policy, the treasury manager must first determine the value of the corporation's stock, often with the help of a specialist. Buybacks are usually carried out as part of corporate restructurings, but may also be used to deter unfriendly takeover attempts. Some buybacks are not conducted on the open market. Shareholder repurchase programs are usually easier to conduct than stock buybacks, due to the expertise of the individual investors involved in such repurchasing.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1986
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Controversy returns to indexed funds after market crash
Article Abstract:
The Oct 1987 stock market crash has affected the value of indexed investment portfolios, which had been enjoying strong gains for several years. Debate has been restimulated about the relative merits of indexed funds versus actively managed ones. It is suggested that active portfolio managers should try to even out the lows and highs of market movements, given the current concern about indexed funds' volatility. Some hybrid funds are emerging that contain elements of both indexing and active management.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1988
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