If you haven’t noticed, I’ve had some very welcome free time on my hands and have been able to dedicate some more time to the blog. So for better or for worse, I’ll be posting some more content. In the spirit of this, I wanted to write up a short weekend discussion of some developments … Read more
There are many misconceptions floating around the internet on stock buybacks and their implications. Presidents, congress, and political commentators have scorned them for years as corporate greed, corporate mismanagement, or just down-right immoral! But what exactly is a stock buyback? And how do they differ from a cash dividend? Let’s try and cut through the … Read more
A company has three general buckets of ownership stakes, traditional debt such as a loan, a preferred share, and common stock/equity. When a company is liquidated, each of the investment stakeholders have different priority rights to the remaining company assets. They are traditional debt, preferred shares, and then common equity in that order. Preferred Shares … Read more
