Mon 23 Jan 2020
Extraordinary Capital Flows Inflate Equity Prices: Q3 2005
The S&P500 index rose 2.8% in Q3 2005, manipulated upwards by highly motivated corporate executives intent on using stock buybacks to enhance market ‘performance’ and cash in on stock options — before SEC rules requiring greater disclosure of management remuneration become effective in 2006. (Federal Reserve Flow of Funds Table F213) Stock buybacks by non-financial […]