Who Wins When Companies Buy Back Their Own Shares?

Who Wins When Companies Buy Back Their Own Shares?

Assessment

Interactive Video

Business

University

Hard

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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.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How did the value of executive sales compare to ordinary days following buyback announcements?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What concern did SEC Commissioner Robert Jackson express regarding insider sales after buyback announcements?

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