Ponzi scheme has a very specific definition, which is that the money to pay out earlier investors comes from new investors. That's specifically the test that the FTC and SEC use to prosecute such cases. With buybacks, the money used to buy out investors comes from the operating profits of the company. Economic activity is happening, money is being exchanged for goods and services, and then the money is being returned to shareholders in accordance with the company's fiduciary duties.
Curious if you understand where the cash from a buyback comes from? That it's out of the corporate treasury, where it was previously accounted for as part of the profits of the corporation?
Curious if you understand where the cash from a buyback comes from? That it's out of the corporate treasury, where it was previously accounted for as part of the profits of the corporation?