Post
Topic
Board Economics
Re: Companies pumping their own stocks with borrowed money, what could go wrong?
by
aso118
on 12/05/2015, 01:03:55 UTC
If you can borrow at close to 0% rate to do whatever, wouldn't you do  the same?

When it is payback time, companies will discover that it is not easy. If there is a stock market meltdown, issuing equity won't be easy. Stockholders won't like companies cutting dividends either.