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Talk:Share repurchase

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History of repurchases

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There is virtually nothing about the history. The adoption of the main rule, SEC Rule 10b-18, is not explained. Why was it adopted? The situation before that is never discussed.

The only hint of history is the first paragraph under "Economic impact", which is confusing.

Share repurchases have been critically evaluated since the 1970's but after 1982, the Securities and Exchange Commission largely condoned them. At that time, the agency already ascertained "that a large volume of stock buybacks would manipulate the market". Only when Rule 10b-18 was implemented in the US, stock repurchases were seen as "virtually unregulated".

What does "critically evaluated" mean? (Be specific.) How does that differ from "largely condoned"? What changed in 1982 about the legal situation, aside from having a rule? What is the source of the quoted material? (And why is this vague history misclassified?) Zaslav (talk) 05:30, 27 November 2022 (UTC)[reply]

Tax avoidance

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Shouldn't this text mention that stock buyback can be a way to avoid taxation.

According to CNN: "Share repurchases are a way for companies to return cash to shareholders indirectly, without them having to pay taxes as they would on a stock dividend." https://edition.cnn.com/2023/04/25/business/bed-bath-beyond-share-repurchases/index.html 177.224.183.92 (talk) 00:02, 19 August 2024 (UTC)[reply]

Thanks for the suggestion and link. I added it. It is not a way to avoid taxation, but to pay taxes when you want (when you sell the stock). ---Avatar317(talk) 00:49, 22 August 2024 (UTC)[reply]