- stocks can still go down after buy backs (no guarantees) - Lose cash - Stock repurchasing can weaken a company's ability to weather an economic crisis - Boosts earnings per share temporarily, but doesn't increase fundamental value - To benefit executives - can offset when stock options are exercised (short term solution and then company typically sells shares later on) - Buybacks that use borrowed money are risky (companies tend to always believe their shares are undervalued)