https://www.proquest.com/docview/2780266114/D21D4D888EC14534PQ/1?accountid=27715

Topics: Stock Buybacks

Summary: U.S. stocks have received support from a key source during 2023's shaky market environment: companies repurchasing their own shares. Stock buybacks by companies in the S&P 500 are projected to top $1 trillion in 2023 for the first time in a calendar year, according to S&P Dow Jones Indices. Authorizations for repurchases are picking up pace: As of Feb. 17, they totaled more than $220 billion, a record for that point in the year, according to a Goldman Sachs analysis of S&P 500 and Russell 3000 companies. Classroom Application: This article provides an opportunity to discuss share repurchases and, more broadly, payout policies and capital allocation.

Questions: How do share repurchases serve as a "buoy" for individual stocks? How can share buybacks contribute to earnings per share growth? Do investors view share buybacks differently from dividends? If so, why? How has the 1% buyback tax impacted share repurchases?