Because that will buoy our stock price, which is important.
Why?
Because our stock price is also our operational funds.
How comes?
Because our actual funds are invested somewhere else.
Why?
Because it makes shareholder richer.
Oh.
.. no it isn't? This is conflating "equity" with "free cash". Have a look at one of the balance sheets.
However, until now, it has been my understanding that the way any large company works is by using their stock value as collateral against short term investments from banks, which then serve as operational funds.
Am I wrong?
It looks like I cannot delete or amend my post, which is a shame.
You occasionally get debt-to-equity swaps in near-bankruptcy situations.
There was a certain amount of "borrow against funds held in Ireland to avoid US repatriation taxes" done by Apple, but that wasn't using stock as security, that was using cash of a different subsidiary.
or is it because a large portion of the global revenue is "parked" outside the US for tax reasons?
or due to stock buyback there are not much "funds" at all?