Dusseldorf Concerns in the economy about horrendous energy prices, rising interest rates and a recession are growing day by day. Nevertheless, the companies are taking more money than ever before to buy back shares, i.e. to buy up their own shares and withdraw them – and thus give their shareholders a gift.
Eventually, corporations tighten supply and spread profits and dividends across fewer shares, which usually pushes prices up. The 500 companies in the American S&P 500 index alone announced new share buyback programs for a total of 985 billion dollars within a year.
That’s more than ever, and according to calculations by the financial data specialist S&P Dow Jones, it’s 11.7 percent more than a year ago. The companies themselves are thus the largest group of buyers on the stock exchange. iPhone maker Apple bought $92.4 billion of its own stock in just one year.
Share buybacks are controversial
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