Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 225- Buybacks (Part 2)

This week Phil and Danielle continue their conversation by talking about companies using their extra money to buy back their own stock. The conversation shifts when they discuss varying choices that companies make when board members want to retain or increase their control.

There are different approaches a company can take when it comes to controlling a company and its decisions. As a shareholder, it is important to be aware of the different approaches companies take and the level of control you actually have.

Here are a few options that companies have to increase control of their stocks. They can issue different classes of stock (voting and non-voting). They can buy back their own stock to either keep or use to acquire other companies with. If the company is private, it can also choose not to go public and keep control internal.

At the end of the day, if a company is public, the shareholders own the company.

Join us on the podcast today to learn about the different levels of control a company can have over the decisions it makes as well as understand the level of control you have as a shareholder.

Show Notes:
InvestED: Ep. 224- Buybacks (Part 1)

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On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.