what are criticisms of buybacks 
a buyback can create a perception that a business does not have other pathways for revenue growth it also can deplete the company s cash reserves leaving it less able to withstand a downturn buybacks also are criticized for artificially inflating the share price 9the bottom linecompanies buy back their shares to reduce the number of share outstanding the expectation is that if the float or number of shares outstanding is reduced this will have a positive effect on the stock price a company may consider a share buyback program for any number of reasons one of the more controversial of these is to reward company executives who often get a large proportion of their pay in stock options 