Author: Sebastian Montague

The discourse surrounding corporate practices, particularly those involving stock buybacks, tends to follow a straightforward narrative: that such buybacks are a mechanism for returning capital to shareholders. This conviction stems from the idea that by decreasing the number of shares available in the market, each shareholder’s proportionate stake in the company’s earnings increases. My earlier analytical pieces, such as “Stock Buybacks Aren’t Bad, Just Misused,” delve into the intricate reality that challenges this simplistic viewpoint. If buybacks genuinely acted as a direct return of capital akin to dividends—meaning distributing cash equally amongst all shareholders—the actual outcome would starkly contrast with…

In the bustling world of finance, Wall Street witnessed a modest step back in its latest session, yet it was still able to secure a consecutive weekly gain. This development arrived in the wake of fresh consumer inflation data, igniting optimism about a potential interest rate cut by the Federal Reserve in the approaching month. Wall Street’s journey through the week was marked by a blend of anticipation and resilience. The Dow Jones Industrial Average, a composite of 30 notable stocks, saw an uplift of approximately 1.7%. The S&P 500, a broader benchmark of market performance, edged up by around…