Running head: EDITORIAL ESSAY1Editorial EssayNameInstitutionEDITORIAL ESSAY2Editorial EssaySummary of the Article: Restricting Stock Buybacks Will Hurt the EconomyRestricting Stock Buybacks Will Hurt the Economy is an article that brings out theeditors opinion on the government proposal to restrict how companies ought to buy stocks andshare dividends. The plan by the government as brought out by Bolten and Bertsch is that theattempts by the government will hurt the business more than the benefit of offering economicsecurity (Bolten & Bertsch, 2019). It further explains the reliance of companies on individualsand other institutions to get funds that are then used to propel the companys operations. Thearticle describes the dependence of the companies on the funds to generate profits and sustainthemselves. The profit raised is then used to clear their debts and pay stakeholders in the form ofdividends. Such an economic environment then leads to more investment and attract moreinvestors to the sector.They also bring out the need for sovereignty in that the companies should be able to makefull decisions concerning the two aspects as it will enable them to survive through hard economictimes in that they will have the muscle to buy back the shares when the growth potential fails.They justify that failure to do so, or if the government puts the restriction, then the resultingscenario is that the companies will opt not to spend the cash leading ...
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