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Raising money by issuing stock for the purpose of modernizing a company is one thing, as an investor I'd be happy to buy such stock.

But I would not buy stock only for the company to do buy-back programs for other shareholders, especially not if the company would be in a worse shape (i.e. less net worth of its assets and debts) afterwards.



You can't finance a stock buy back with more stock.

A firm has assets and operations and those are funded with either debt or equity. Borrowing money to buy back stock is simply changing the capital structure of the firm.




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