As the stock market continues to increase in
value, more and more companies are thinking it wise to own more of their own
stock. According to Birinyi Associates, 198 companies authorized stock buybacks
in February, which is an increase of 28 percent from the same month a year
earlier.
That added up to a staggering $117.8 billion
worth of buybacks in February, the highest amount on record. The previous
record was set in December 2007, when there was $89.1 billion in buybacks. A
year ago, in February 2012, the number was just $68 billion.
At this pace, we can expect American companies
to buy back about $827 billion worth of their own stock in 2013. That would be
the second highest yearly total ever, edged out only by 2007, when the
comparable figure was $863 billion.
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