>the company doesn't have the money it used to buy back and cancel the shares any more
As opposed to the money that it used to pay the dividends?
>If the shares were appropriately priced before then each outstanding share is worth about the same after.
Right, but now you paid some number of share holders to exit their positions. It's the equivalent of buying $10 worth of stocks and giving it to you as the "dividend", rather than giving you $10 cash.
As opposed to the money that it used to pay the dividends?
>If the shares were appropriately priced before then each outstanding share is worth about the same after.
Right, but now you paid some number of share holders to exit their positions. It's the equivalent of buying $10 worth of stocks and giving it to you as the "dividend", rather than giving you $10 cash.