Indexology®: Buybacks and the S&P 500 EPS
March 09, 2014 at 07:30 AM EDT
Buybacks do not increase S&P 500 Index earnings-per-share (EPS), the Dow is a different story. On an issue level, share count reduction (SCR) increases EPS, therefore reducing the P/E and making stocks appear more ‘attractive’. SCR is typically accomplished via buybacks, with the vital...
