Talk:Share repurchase

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[edit] Why?

Article says nothing about why a company would want to buy back its own stock. What is the motivation? To keep the stock liquid? To prop up its price? Why prefer stock repurchase over paying dividends? Or do companies do both? Why has stock repurchasing become so popular in recent years? Why? Why? I want to know why! Smithfarm (talk) 20:53, 6 April 2008 (UTC)

I concur with the above comment. That is precisely why I came to this article but did not find the answer. It seems to me that the use of cash reserves to repurchase stock is a poor use of capital if there are alternative investments that could be made. Could someone knowledgeable please elaborate within the article? Rollo44 (talk) 05:05, 8 May 2008 (UTC)