• Caveman
    link
    411 hours ago

    It’s a bit more nuanced. Buying the stock increases the stock price which makes issuing stock a better deal for the company in case they want to expand operations. It also makes stock buybacks less likely.

    So if they issue stock OP is indirectly funding the company. If OP prevented a buyback and the money went into investments such as a new prison OP has an different effect. Otherwise there’s no effect.