Are Stock Buybacks Good or Bad for Markets?

Are Stock Buybacks Good or Bad for Markets?

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the rapid pace of stock buybacks, the fastest since 2007, and their impact on the market. It highlights the benefits of buybacks, such as boosting earnings per share, but also notes the potential downside of sacrificing future growth. Barclays' research suggests that while buybacks have led to outperformance, there is concern about long-term growth. The video also examines the effect of buybacks on the market, including a noticeable bump in S&P 500 earnings per share.

Read more

2 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • 1 pt

What effect does the limited supply of stock due to buybacks have on the market overall?

Evaluate responses using AI:

OFF

2.

OPEN ENDED QUESTION

3 mins • 1 pt

According to the Barclays report, how much has the earnings per share of the S&P 500 been boosted due to buybacks?

Evaluate responses using AI:

OFF