It's a simple calculation as to whether the company can make more by investing in the company or cashing out. Also, executives don't live forever. At some point, they want their money.
It's frowned upon because it's a good sign growth is slowing or ending. But that doesn't mean it's not a good decision for those with skin in the game.
If you own part of a company, you want to be paid, right?
TheRealRollestonian t1_j6kr6vo wrote
Reply to ELI5: What does it mean when a company buys back stocks and why is it frowned upon? by lilly_kilgore
It's a simple calculation as to whether the company can make more by investing in the company or cashing out. Also, executives don't live forever. At some point, they want their money.
It's frowned upon because it's a good sign growth is slowing or ending. But that doesn't mean it's not a good decision for those with skin in the game.
If you own part of a company, you want to be paid, right?