- For most bonds, the game ends at maturity.
- The money used for stock buybacks doesn't come from other shareholders, so that's not zero sum.
- Many companies have substantial assets, so they do have liquidation value.
However, it's true that most stocks trade far above liquidation value, under the assumption that the game will continue.
- For most bonds, the game ends at maturity.
- The money used for stock buybacks doesn't come from other shareholders, so that's not zero sum.
- Many companies have substantial assets, so they do have liquidation value.
However, it's true that most stocks trade far above liquidation value, under the assumption that the game will continue.