re: #325 lawhawk

It’s assumed/implied that the stock buyback would not only help support share price going forward but would add to existing shareholders’ profits by limiting the pool of shares outstanding (making them more desirable because the value is less diluted).

So, as the stock price rebounds, the shareholders would profit on the increase (and the buyback reduces downside risk as well - limiting the float).

I understand the effect that a stock buyback has on share price, but I’m saying that the fact that the stock price has dropped before the buyback only represents a “win” for JPM if there’s an assumption that the current price is an undervaluation of the stock.

Otherwise, it would seem you’re just paying less for something that’s worth less - i.e., there’s no net gain there.