The arbitrage comes in three forms: corporations buying other corporations for cash, corporations buying some of their own shares for cash and private equity investors buying corporations using mostly borrowed money.
Shareholders would be better off if corporations disbursed cash by buying in shares instead.
Better, surely, to sell its assets to more capable managers and pocket the cash, buying future services as needed.
ECONOMIST: Selling Westinghouse is lucrative but controversial
Now they'll defer to CBS Chief Mel A. Karmazin, who will funnel their cash into buying more TV and radio stations.
The zero-yield club includes new companies like Facebook as well as mature ones like AutoZone that disburse cash by buying in shares.
Facebook, for one thing, is not going to spend its new pile of shareholder cash on buying a rickety, crumbling contraption like RIM.
FORBES: Will Facebook Buy RIM? Uh, No, Not In A Zillion Years
If shoppers start hoarding their cash and buying less stuff, it could spell big trouble for the retailers that are relying on high volumes to hold up their profits.
Shares in Allied Domecq jumped on reports that Warren Buffett , through his Berkshire Hathaway investment vehicle, is spending some of its cash pile buying a stake of over 3% in the British firm, the world's second-largest wine and spirits group, which also owns the Dunkin' Donuts and Baskin-Robbins food chains.
If the latter, you would probably be better off putting two-thirds (or more) of your money in cash investments and buying a straightforward index fund with the balance.
David Abella, an analyst at Rochdale Investment Management, expects Wal-Mart to take advantage of the difficult environment by cutting prices further in an effort to attract shoppers away from competitors, as well as convince those tight on cash to keep buying.
Could a nation facing huge trade deficits make its cash cards useless for buying imported products?
In turning away from Latin America, Telefonica is gambling that its cash is better spent buying European mobile customers.
With most of the funds tied up in long-term assets, that could leave the banks short of cash if investors stop buying new products.
Did Apple decide to switch from its already widely used 30-pin dock to the new 19-pin one so that it could cash in on people buying adapters?
FORBES: Will Apple Be the ONLY Provider of iPhone 5 Dock Adapters?
Massone told BBC Scotland earlier this week that he was keen on returning to Scottish football and sees buying the cash-strapped Ayrshire club as a way of achieving that.
Some corporations have cash on hand (see " Cash-Rich Companies"), some funds are just waiting for the right buying opportunities (see " Cash-Rich Mutual Funds") and many households are very liquid (see " Household Cash" table).
They also live within their means by buying things in cash rather than financing them.
The programme, which involves pumping new cash into the economy by buying government bonds, has instilled confidence among investors.
To help consumers make more cash-sensible car-buying decisions, KBB recently announced its annual Total Cost of Ownership Awards in 22 separate vehicle classes.
As an example, when the market turned lower in 2008, the fund had cash to take advantage of buying opportunities while others were still liquidating, Denbow said.
FORBES: USAGX's Denbow Looks For Gold Stocks 'That Will Survive In Most Markets'
The deal may signal the start of a smart-grid buying spree for cash-equipped conglomerates like Toshiba eager to tap the vast capital outlays expected from electric utilities over the next decade.
Buying in shares with cash needed for other purposes is not a good idea.
Mr Milburn also announced that older people in need of care could choose whether to have a direct service or cash to cover the cost of buying care.
In that vein, Miller tries to be opportunistic, but with cash flowing in he finds himself buying whichever of his core ideas looks the best on any particular day.
FORBES: Conviction Pays Off For Gabelli's Fast-Growing Focus Five Fund
With gigantic hoards of cash at their disposal they are buying distressed properties, mostly those in foreclosure or through lender facilitated short sales, one at a time and in bulk where they can.
FORBES: Rising Home Prices And Falling Unemployment: Don't Trust the Numbers
Fund managers will always disagree on whether it's better to stay fully invested in the market, and so catch the upswings in addition to the downdrafts, or to build up cash reserves for those times when buying opportunities arise.
Sure, you are buying the device with cash up front, but it saves you in the long term by allowing you the freedom to jump carriers. (Jump to end of post if you are looking for the TechCrunch contest info).
Never selling shares, he leveraged the cash flow from the pipelines to keep buying and building.
FORBES: Pipeline Tycoon Dan Duncan Worth $9.8 Billion At Death
When we purchase a stock, we are buying a stream of future cash flows.
When consumers fork out hard-earned cash for a product, they are buying the emotion the brand gives them much, much more than a multiplicity of features.
FORBES: When the Shopping Gets Tough, The Tough Go With Their Guts
应用推荐