“The 30 companies listed on the Dow Jones industrial average have authorized $211 billion in buybacks in 2013, helping to lift the benchmark stock index to heights not seen since the tech boom of the late 1990s. Why spend so much on stock repurchasing? When the number of shares outstanding falls, the value of each one goes up, instantly rewarding shareholders.  The repurchase also lifts earnings per share, an important number closely watched by investors — and by corporate boards in determining executive pay.  Ultimately, analysts say, when companies spend money on buybacks rather than investment, they’re signaling low hopes for economic growth.”

http://www.washingtonpost.com/business/economy/companies-turning-again-to-stock-buybacks-to-reward-shareholders/2013/12/15/58a2e99c-4aef-11e3-9890-a1e0997fb0c0_story.html

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