Companies don't exist for returning money to shareholders, but issuing stock exists to return money to shareholders. 1. Company issues stock in order raise cap

Companies don't exist for returning money to shareholders, but issuing stock exists to return money to shareholders. 1. Company issues stock in order raise capital 2. Company uses capital to grow business 3. Company returns money to stock purchases as risk-reward for purchasing stock Buy-backs are what a company _should_ do once the capital it raised has had a positive ROI