Never have a read a more incorrect analysis of a company buying back stocks then this. Legal way to manipulate the market?
Okay. Let me see if I can explain this to you. A company starts out by issuing 100k shares of stock at 10.00. Now those people that buy those stocks are share holders. They get a say in what the company does based on how many stocks they have. They get a part of the profits the company makes as share holders.
Buying the stocks back, which is them buying part of their own company back, is not immoral, unethical or any such nonsense and its not going to get people out buying stocks because stocks are not limitless. Yes it will increase the value of the company because every stock the buy back is a greater % of the company that they own themselves. It means they pay out less to shareholders, have less people to report to, etc.