JPMorgan stocks hinder further growth of the company
JPMorgan faced an unusual problem: the value of securities was at a record high, as Forbes reports. The investment bank itself redeems its own shares, spending a considerable part of the budget, thereby increasing the cost of securities, which cannot but satisfies investors. But at the moment, stocks have increased in price so much that investors began to doubt that anyone would buy them. Bank Financial Director Jennifer Piepszak said the organization will consider alternatives if shares continue to grow.
Investors are worried about declining stock returns as the refinancing rate in the United States remains low. The termination of the repurchase may suspend the rise in price of securities or even reduce their cost.
Similar operations have become popular among US companies. Along with this, they cause criticism of many organizations. Elizabeth Warren and Bernie Sanders, candidates for the presidency of the United States, proposed limiting the number of redeemable securities, and noted that companies should spend extra money on salaries for employees.