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212 points pseudolus | 10 comments | | HN request time: 0s | source | bottom
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akira2501 ◴[] No.42198624[source]
An entire department was just rendered useless. I genuinely don't feel bad.
replies(3): >>42198645 #>>42198780 #>>42198825 #
_DeadFred_ ◴[] No.42198825[source]
It was funny watching the warrior whatever site back in the day when Panda came along. Love when these people get their horrible business models kneecapped.

Now let's make corporate stock manipulation illegal again and ban corporate stock buybacks. Talk about a purely manipulative business strategy.

replies(2): >>42198845 #>>42200247 #
1. red_trumpet ◴[] No.42198845[source]
What's the problem with stock buybacks?
replies(3): >>42198921 #>>42198951 #>>42199483 #
2. mathgeek ◴[] No.42198921[source]
Couple articles that explore that:

https://hbr.org/2020/01/why-stock-buybacks-are-dangerous-for...

https://www.theatlantic.com/ideas/archive/2018/07/are-stock-...

3. notyourwork ◴[] No.42198951[source]
Nothing directly, it just sounds bad at face value.
replies(1): >>42199488 #
4. _DeadFred_ ◴[] No.42199483[source]
They are nothing but direct stock manipulation that was 'legalized' at the same time where executive compensation was moved from salary to... stock, so that you end up with a quasi-legal (stock manipulation by executives is supposed to be illegal) corrupt incentives system.
replies(1): >>42199576 #
5. _DeadFred_ ◴[] No.42199488[source]
'Stock manipulation is cool, especially when you change executives pay structure to be based purely on said manipulation. Totally creates healthy incentives not perverse ones.'
replies(2): >>42199861 #>>42200338 #
6. quickthrowman ◴[] No.42199576[source]
Two things:

-Stock buybacks are not manipulation, they’re simply a way to return cash to shareholders and then the shareholder decides when to incur tax liability. A company is well within its rights to issue additional shares or buy back and destroy shares at their discretion. It’s functionally equivalent to a dividend without a taxable event.

-Corporate boards award stock grants to executives because they want management to be aligned with shareholders. I think executive compensation is excessive, but stock grants do align management and shareholders.

replies(1): >>42199770 #
7. chipsrafferty ◴[] No.42199770{3}[source]
Dilution is immoral and unfair to investors. If a company wants to raise money they should have to sell shares they own, not print more and sell those.
replies(1): >>42200380 #
8. notyourwork ◴[] No.42199861{3}[source]
Sorry, buy backs are not stock manipulation. Let's step back from emotions and political skew. A company is able to take their capital and deploy it how they see fit. This can include purchasing percentage ownership of their company back from stockholders. Whether or not you agree doesn't make it manipulation in the general sense. It's just a way for a company to use their money.
9. l33t7332273 ◴[] No.42200338{3}[source]
It’s a way to return money to share holders.
10. l33t7332273 ◴[] No.42200380{4}[source]
I think it’s kind of up to the investors what is unfair for them.