Is it unethical for a company to purchase shares of its own stock to improve measures of financial performance

Question

Is it unethical for a company to purchase shares of its own stock to improve measures of financial performance

Answer 1

Not at all as long as it is disclosed.  The SEC has a lot of rules governing the re-purchase of shares but companies, their Officers and other insiders.

But it is not unethical at all, in some cases I will buy stock in a company were the owners are increasing there holdings, and would sell shares in a company where the owners are also selling.

Answer 2

it is pretty common for a company to buy back it owns stock but it could be for several reasons.

yes to improve it's own financial measures, but that is only one or two ratios that would be improved. they also could be preventing a take over, or could be pulling back the stock to resell it to their own employees.

A company buying their own stock is not an uncommon practice by any means.

Answer 3

Companies by back stock often..

Answer 4

I bought millions and millions of barrels of oil when they cost $60--$100 a barrel. I expect to make a kill when I sell. But right now it’s only over $140 a barrel. So here is my difficulty:

I have requested my agents spin the media, like: “Oil future looks high, expecting to be in the range of $200 a barrel soon”   But it does not work price up fast enough.

I have paid the mainstream media, the Think Tanks,  and the major PR talking heads,  to spin China and India (supply and demand) responsible for price hike, to deflect American public anger. But that does not go far enough.

Right now, I am extremely nervous and worried. I urgently need a prey to buy those “paper barrels” on my hording. So I can profit.  But where can I find my prey ?

Answer 5

No, companies do share buybacks all the time for many reasons.