Company Stock Buybacks: Good or Bad?

Company stock buybacks sound innocent enough: a stock buyback occurs when a company repurchases its own shares. But the effect is insidious. Buybacks inflate paper profits without producing anything of tangible value -- which means earnings will be inflated and misleading to investors. That's why Money Morning Capital Wave Strategist Shah Gilani accuses buybacks of being a large part of the "financial engineering" going on in U.S. markets right now. In the following video, Gilani explains exactly how company stock buybacks work -- and how investors can make money in the buyback game: Tags: are stock buybacks good for investors , company stock buybacks , share buyback , share buybacks , share repurchase , share repurchases , stock buyback , stock buybacks , stock buybacks good or bad , what is a stock buyback To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Company Stock Buybacks: Good or Bad? appeared first on Money Morning - We Make Investing Profitable .