When a company buys shares or there is insider ownership, does this mean that they care more about what direct

Question

ion the company is going? What is your take on insider ownership and trading?

Answer 1

There are lots of theories about a company buying back stock. The think to remember is that it is a way for a company to give cash back to its owners.

A lot of companies think that it is better to buy back stock than to pay a stock dividend. There are several reasons for this. One is that investors pay less in taxes on shares that are bought back than they do on dividends. This is true even with the recent tax change on dividends.

Another reason is that with a buyback, only those investors who prefer cash will participate. More choices for the investor is a good thing.

Buybacks are also less sticky than dividends. If a company pays dividends this year -- it will be punished for lowering dividends next year. If it buys shares back this year, there is no implicit offer to buy more back next year.

Finally, buybacks are thought to be a signal of private information. Would the company buy back more shares if it thought that the shares were overpriced? No -- that would be stupid. It would issue more shares in that case. Would it buy back shares if they thought the shares were underpriced? Yes -- that way those who keep the stock benefit more when the truth is revealed.

Answer 2

The global has misplaced a real and infrequent big name within the variety of Michael Jackson. Never has there been such an mighty skillability as him. His skillability and fan base has been in comparison to that of The Beatles and Elvis, however i suppose its reasonable to mention that he's a legend so much better than some other band or artist. His songs have been real influential to the track global and set a commonplace so prime that not anything in view that has fairly when compared. There has been no different artist who has accomplished such dizzy heights as Jackson. For me, Michael Jackson prompted me together with his dancing talent and his songs. There is not a tune of his that i do not love. I recognize many of the phrases to his songs, and might watch his dancing for hours on finish. Now i wasn't a few wonderful fan, however i consider he used to be a real idol and that i do not suppose the sector will see the sort of skillability ever once more. I suppose he used to be misunderstood and his quirky (and typically somewhat off the wall) approaches have been taken utterly the unsuitable method by way of the sector. It saddens me that the sector is the sort of judgemental and vicious situation, and that i want he might have visible what number of dependable and loving lovers he had. RIP Michael Jackson.

Answer 3

When insider are buying up stock 99% of the time that is a good sign. not necessarily meaning the stock will jump 50% over the next week but in the long term the stock should perform better. By having his/her own personal wealth invested in the company he/she runs the CEO/President/and/or Chairman will likely strive to make the company more successful for his/her own sake.