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What happens if you own stock before a stock repurchase and do not sell any of your stock?
Wiki User
∙ 15y ago
If the company decides to repurchase stocks, the number of shares outstanding is reduced. If you don't sell your stocks your interest in the company is increased for your stocks make up a higher percentage of all outstandig stocks. Stock repurchases are often performed by companies whose earnings growth is mediocre in order to increase earnings per share. This factor influences stock prices, so stock repurchases are often welcomed by investors. Companies also decide to repurchase stocks because the increase in the value of your stocks is not taxable, unlike dividend payments. If a company sells new shares the earnings per share are reduced, which often affects stock prices in a negative way. In order to maintain your stake, you have to buy new shares, if not, your stake becomes lower. If the sale of new stocks is necessary because of aquisitions this is much more favorable instead of capital that is raised in order to pay debts because this would not likely increase per share earnings.
Wiki User
∙ 15y ago
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How long must one wait after selling a stock before one can repurchase again?
It's an important strategy for saving income taxes. You sell the stock at the end of the year to take the loss and buy back because you believe in the stock for the long term. The risk is that the stock will have a run up after you sold and before you bought back. I'm not sure how long you have to wait (per IRS) to buy it back though. That's why I bumped into this question.
What happens when you sell a stock?
You earn money, i think.
What is the difference between a buy and sell in the stock market?
The stock market is kind of like a big yard sale... The sellers want to sell their stock for as much as they can get and the buyers want to pay as little as possible.The buy is the price that a buyer wants to pay and the Sell is the amount the seller wants to sell at. When the two prices match is when a trade happens.
What do liquidate its existing stock mean?
To sell the stock.
What does it mean to sell stock?
Large companies often sell parts of their company (not physical parts) to the public. This is called stock. Selling stock can refer to the company actually selling the stock to someone or whomever has already bought the stock can sell it to someone else.
How long must one wait after selling a stock before one can repurchase again?
It's an important strategy for saving income taxes. You sell the stock at the end of the year to take the loss and buy back because you believe in the stock for the long term. The risk is that the stock will have a run up after you sold and before you bought back. I'm not sure how long you have to wait (per IRS) to buy it back though. That's why I bumped into this question.
What happens when you sell a stock?
You earn money, i think.
What happens if you do not sell your stock but the price of that stock keeps falling?
If the price of a stock that you own shares of goes down, the value of your investment is going to decrease.
What happens in a publicly held corporation?
a large number of stockholders can buy an sell stock
What happens if a supermarket holds too little stock?
The supermarket would probably close until they have enough stock to sell for a long time.
Do you have to hold stocks for a certain period of time before you can sell?
Generally no. If fact you can buy and sell stock you do not hold.
Do people really sell stock market pictures?
I imagine people could sell stock market pictures to places like local newspapers and other publications, and am not sure if that actually happens though.
What is the difference between a buy and sell in the stock market?
The stock market is kind of like a big yard sale... The sellers want to sell their stock for as much as they can get and the buyers want to pay as little as possible.The buy is the price that a buyer wants to pay and the Sell is the amount the seller wants to sell at. When the two prices match is when a trade happens.
Is there any difference if you buy a call or sell a put?
Yes, and it's massive. If you buy a call, the option exercises if the stock price is higher than the strike price. If this happens, you resell the stock and keep the profit. If you sell a put, the option exercises if the stock price is below the strike price. If this happens, you bury the stock in the back yard until the price goes back up.
How long does someone has to keep a stock before selling it?
you can sell it immediately (within seconds) of buying it
Can you sell the stock after ex-dividend date or after record date?
You can sell the stock whenever you want, but you need to own it on the date of record to get a dividend. That means you need to buy it BEFORE the ex-dividend date.
Can you sell the stock after ex dividend date or after record date?
if you sell shares on ex div. date,before the record do you still receive the dividend
