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Can anyone answer this?

Discussion in 'Penny Stocks' started by legman, Nov 7, 2019 at 1:32 PM.

  1. legman

    legman New Member

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    Why would a company return some of its shares to the Treasury ...... and how does that help. or hurt its stockholders?
     
  2. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    I think when companies do buybacks, they put the shares in the treasury. They no longer exist on the books.

    The theory is that it helps stockholders. With some shares put into the treasury, that decreases the # of shares actively being floated. So stockholders have a larger percent of ownership in the company, i.e. the shares are worth more.
     
  3. legman

    legman New Member

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    Gotcha!!! Thanks.

    DANN youre cute!!!!
     

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