Hear that giant sucking sound? Those are shares of stock being siphoned out of the market by companies buying them back. Standard & Poor’s on Wednesday announced that buybacks among companies in its S&P 500 index hit a record in the latest quarter and are continuing to grow at an unprecedented pace.
S&P also found that companies are now spending as much on stock buybacks as they are on capital expenditures. Companies in the information-technology sector are leading the buyback pack.