Who Wins When Companies Buy Back Their Own Shares?

The video discusses the trend of companies buying back shares, which has increased by 55% compared to the previous year. It highlights the impact of buybacks on share prices, noting a 2.5% rise post-announcement. The video also examines the increase in executive sales following buyback announcements, raising concerns about potential stock manipulation. SEC Commissioner Robert Jackson suggests regulatory changes to prevent insider sales shortly after buybacks, but SEC Chairman Jay Clayton has not yet agreed to these changes.

What percentage increase in share buybacks was observed compared to the previous year?

• 75%

• 65%

• 55%

• 45%

How much are companies projected to spend on buybacks this year?

• $600 billion

• $500 billion

• $800 billion

• $740 billion

What was the observed effect on share prices following buyback announcements?

• Increase by 2.5%

• No change

• Increase by 5%

• Decrease by 2%

How much higher is the value of executive sales after buyback announcements compared to ordinary days?

• Six times higher

• Five times higher

• Four times higher

• Three times higher

What change does SEC Commissioner Robert Jackson propose regarding insider sales?

• Ban insider sales permanently

• Allow insider sales immediately after buybacks

• Restrict insider sales for a period after buybacks

• Increase insider sales limits