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Question
Dear Sir,
When companies buy back their own stock, do they take it out of commission, or just hold on to it and not let it be resold? If they 'eliminate' it, would the objective be to enhance the value of the remainder of the stock the public owns?
Thank you.
Treasury stock could be re-sold. I have never seen this work on repurchase. It subtracts against the equity and total assets, and reduces the value of the company. USA is one of the few places left allowing repurchase of stock.
Dr. Joe de Beauchamp
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Beginner Investing
Answers by Expert:
Dr. Joseph de Beauchamp
Expertise
I`ve been teaching MBA students around the world for the past 15 years. I have covered over 50 stock markets and published on over 2000 public companies. I review and check on nearly 6000 financial reports a year. I would be glad to help out with questions.
Experience
Past/Present Clients
Over 2000 public companies.
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