Much of the windfall that U.S. corporations experienced with the Trump tax cut went into buying back their stock. The stock buybacks accomplished their intended purpose which was to support or drive up stock prices. This has helped keep the stock market rally going. But, is there a dark side to all this? Are stock buybacks dangerous at some level?

Stock Buybacks

Investopedia poses the question, why would a company buy back its own shares?

The most visible result of share buybacks is that it preserves or increases share price. But, there are three other good reasons […]