The Rise of Stock Buybacks

Companies are increasingly using stock buybacks as a strategy to enhance shareholder value and elevate stock prices. This financial maneuver has gained popularity since deregulation in the 1980s allowed corporate entities to repurchase their own shares. With significant cash reserves, many major firms, such as Microsoft and Apple, have initiated extensive buyback programs, reflecting confidence in their financial health. The trend is indicative of a broader pattern in which corporations prioritize short-term gains for shareholders rather than investing in long-term growth opportunities.