Tax reform as a gift to shareholders: Major American companies are buying more and more equities, mainly due to the fiscal reform of President Donald Trump. S & P 500 stock repositions reached the record in the last quarter, as revealed by the S & P Dow Jones analysis on Friday. Tech giants, such as the Apple Stock Exchange, the alphabet stock chart, or the Cisco stock market chart have begun massive repurchase programs and use the programs to keep their valuations in the stock market artificially high.
So far, repetitive purchases worth $ 194.1 billion have been announced for the third quarter. Although not all interim reports yet, this is already a new high, which already exceeds the previous $ 190.62 billion in the second quarter. The current statistics could even surpass $ 200 billion in cash, according to S & P analyst Dow Jones Howard Silverblatt.
purchase of own shares: Implicit care of companies
The background is, in particular, the tax cuts adopted by Congress at the end of last year. They also resulted in higher dividend payments from S & P 500 than a year ago.
With its tax reform, Trump keeps the burst on stock markets. Several times Trump has already boasted that the stock market recovery, which was already in full swing when she took up her duties, goes back to it. In fact, its tax reform has as its main objective to provide companies with a quiet maintenance and to maintain prices at a high level. In recent weeks, however, Dow Jones has pushed.
to / Reuters