Share buyback hit its highest level in history last year, according to new data.
The practice has come under the control of some Washington lawmakers who say US companies do not use the water from 2 01
In a tweet, former Goldman Sach's CEO Lloyd Blankfein challenged this premise and said "the money doesn't disappear."
"It is being reinvested in higher growth companies that increase the economy and jobs," he added. "Is it bad?"
Sanders, seeking the democratic presidential election, responded that it did not disappear – "it increases the wealth of billionaires like him," refers to Blankfein.
Share repurchase has hit record for the last four consecutive quarters, according to the S&P Dow Jones data. Repurchase in the fourth quarter saw a 63 per cent annual profit of NOK 223 billion. The record came when stock prices fell on average by 5.3 percent in the quarter, which allowed companies "to buy even more shares for their dollars and reduce their shareholdings more effectively," said senior chief executive analyst at S&P Dow Jones Indices.
The companies continued to spend more of their tax savings on these repurchases, as they increased earnings through significantly reduced shareholdings, says Silverblatt in a press release.
Apple was the biggest buyer in terms of buying back. Last year, the iPhone manufacturer spent $ 74.2 billion to buy back own shares – up from a total of $ 34.4 billion in 2017. In the fourth quarter, Apple increased $ 10.1 billion in buybacks, lower than the $ 19.4 billion which was used in the third quarter. It has now spent more than a quarter of a trillion dollars – $ 260.4 billion to be accurate over a 10-year period to buy back its own shares.
Oracle was the second largest buyer, followed by Wells Fargo, Microsoft and Merck.
But all sectors did not spend as much. Information technology buybacks in the quarter fell to $ 61.3 billion compared to $ 82.3 billion the year before. Healthy food repurchase more than doubled from the previous quarter.