What Are Stock Buybacks?

This video is part of a collaborative business and economics project with Job Creators Network and Information Station. To learn more, visit https://informationstation.org.

Donate today to PragerU! http://l.prageru.com/2eB2p0h

Get PragerU bonus content for free! https://www.prageru.com/bonus-content

Download Pragerpedia on your iPhone or Android! Thousands of sources and facts at your fingertips.

iPhone: http://l.prageru.com/2dlsnbG
Android: http://l.prageru.com/2dlsS5e

Join Prager United to get new swag every quarter, exclusive early access to our videos, and an annual TownHall phone call with Dennis Prager! http://l.prageru.com/2c9n6ys

Join PragerU’s text list to have these videos, free merchandise giveaways and breaking announcements sent directly to your phone! https://optin.mobiniti.com/prageru

Do you shop on Amazon? Click https://smile.amazon.com and a percentage of every Amazon purchase will be donated to PragerU. Same great products. Same low price. Shopping made meaningful.

VISIT PragerU! https://www.prageru.com

FOLLOW us!
Facebook: https://www.facebook.com/prageru
Twitter: https://twitter.com/prageru
Instagram: https://instagram.com/prageru/
PragerU is on Snapchat!

JOIN PragerFORCE!

For Students: http://l.prageru.com/2aozfkP
JOIN our Educators Network! http://l.prageru.com/2aoz2y9

Script:

Hundreds of major American companies, including some of the nation’s biggest employers like Walmart, The Home Depot, Bank of America, and AT&T are using their savings from the 2017 tax cuts to give their employees major pay raises and bonuses.

This is a big win for American employees.

But some companies are also using part of their tax cut savings for “stock buybacks.” Opponents of lower taxes are pointing to these to claim that tax cuts don’t help ordinary people.

But what are stock buybacks and how do they affect everyday Americans?

Most companies don’t own much of their stock–outside investors like people who have 401k plans or have mutual funds do.

But how does this affect you? The biggest beneficiaries of stock buybacks are the millions of regular investors who benefit from boosted stock prices. If you have a 401k retirement plan, or a college investment account, or have a pension at work like a lot of teachers, firemen and police officers do–stock buybacks boost the value of your savings. Giving everyone more money.

Stock buybacks are just one-way companies are using their tax cuts savings. While not as glamorous as pay raises, new hiring, and expansion, they still are good news for the tens of millions of Americans trying to grow their retirement and savings nest egg.