If the company bought back the shares that could destroy most companies as it is almost impossible to have enough cash reserves to cover the value of your company. You can’t get loans for it because you would have to give up stock as collateral which would defeat the purpose of the buyback.
If the stock is bought back then those shares will have lost value as the company has less cash in reserve and is clearly worth less than it was before.
If the shares can only be held by employees they would have no real value. getting a job at that company would likely be very expensive as you would have to buy in and there would be little incentive to do so.
Basically your idea won’t work IRL in any form and would likely destroy the company really quickly. Is it safe to presume you have no formal education in economics because this is intro level stuff.
Capitalism doesn’t make claims in those regards though.
Workers do get paid first in most cases as I got paid when a business I worked for was forced to sell (liquor store that flagrantly violated laws). The people who lost out were the owners who could not sell the business, its stock of booze, or its license.
Why are you presuming they were making tremendous amounts of money on the order of millions after payroll? I mentioned it was a liquor store. The owner made a few hundred grand and paid people well. We all got two weeks severance in addition to our checks. He was an asshole but he paid well and did not fuck around on that point.
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Stocks have value but part of it is speculative.
If the company bought back the shares that could destroy most companies as it is almost impossible to have enough cash reserves to cover the value of your company. You can’t get loans for it because you would have to give up stock as collateral which would defeat the purpose of the buyback.
If the stock is bought back then those shares will have lost value as the company has less cash in reserve and is clearly worth less than it was before.
If the shares can only be held by employees they would have no real value. getting a job at that company would likely be very expensive as you would have to buy in and there would be little incentive to do so.
Basically your idea won’t work IRL in any form and would likely destroy the company really quickly. Is it safe to presume you have no formal education in economics because this is intro level stuff.
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Capitalism doesn’t make claims in those regards though.
Workers do get paid first in most cases as I got paid when a business I worked for was forced to sell (liquor store that flagrantly violated laws). The people who lost out were the owners who could not sell the business, its stock of booze, or its license.
deleted by creator
Why are you presuming they were making tremendous amounts of money on the order of millions after payroll? I mentioned it was a liquor store. The owner made a few hundred grand and paid people well. We all got two weeks severance in addition to our checks. He was an asshole but he paid well and did not fuck around on that point.
deleted by creator