Microsoft takes stock, and Ballmer hits the road
MCP Magazine | at | by Mike
Microsoft has been sending signals to investors this week amidst a U.S. economy teetering on the edge of a major financial meltdown. On Monday, the company described a stock buy-back plan of $40 billion that was approved by Microsoft's board. Companies typically buy back their stock when they have cash reserves and feel their stock may be undervalued.
Microsoft also started a debt financing program -- a "first-ever commercial paper program" of $2 billion, according George Zinn, Microsoft's treasurer. The company plans to use the money for working capital and stock repurchases.