Companies often opt to buy back shares in place of a dividend. The value of a dividend is usually hooked to a business’ annual performance while a buyback scheme is typically priced on the valuation of its stock. Buybacks are common among start-ups and growth-stage companies that want to reward shareholders and allow them to take some cash off the table. This is particularly true in tech firms where a portion of employee compensation is made up of share awards. Fintech giant Stripe allowed staffers to sell some of their stakes this year while Revolut is also reportedly lining up…
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