Goldman Buyback Desk Orders Rose 'Dramatically' in Rout: Kostin

Goldman Buyback Desk Orders Rose 'Dramatically' in Rout: Kostin

Assessment

Interactive Video

Business

University

Hard

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The video discusses the nature of equity markets, focusing on asset and capital light companies that require less capital for growth. It explores how this affects share prices and the role of stock buybacks, which are not necessarily negative. The prioritization of corporate spending is outlined, with capital spending, R&D, mergers, and dividends taking precedence over buybacks. The video also highlights market reactions to buybacks, using Goldman Sachs as an example, and how companies are sensitive to share price levels when buying back stock.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a characteristic of many growing companies in equity markets?

They are asset and capital light.

They require a lot of capital.

They focus on heavy manufacturing.

They have high debt levels.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do stock buybacks relate to share prices according to the transcript?

They can drive up share prices.

They are unrelated to share prices.

They have no effect on share prices.

They always decrease share prices.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is typically the first priority for companies when it comes to spending?

Capital Spending

Research and Development

Stock Buybacks

Dividends

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to stock buyback executions when the market drops?

They decrease significantly.

They remain unchanged.

They increase dramatically.

They are halted completely.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which company is mentioned as an example of increased buyback executions?

Morgan Stanley

Bank of America

Goldman Sachs

JP Morgan