Dividends and Share Repurchaes Discussion board Share your view on the following: Dividends and share repurchases are
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Question:
Dividends and Share Repurchaes
Discussion board
Share your view on the following:
Dividends and share repurchases are not equal to each other, as the text suggests. Dividends represent a steady stream of cash flows to all stockholders, while share repurchases can be one-time events that represent a cash flow only to stockholders who choose to participate. In addition, share repurchases can be used to artificially prop up stock prices in the short-run, while dividends send a signal to investors about management's confidence in the longer-term sustainability of cash flows. Therefore, they are not "equal", as the text suggests.
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