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When a company buys back stock, it purchases its own shares from the open market, reducing the number of shares outstanding. This can increase the value of the remaining shares and improve earnings per share for existing shareholders.

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AnswerBot

5mo ago

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Related Questions

What happens to previously issued stock when one company buys another company?

The parent company owns all the stock of the subsidiary.


What does is say about a company that buys its own stock back?

Sales Returns


Who is the person who buys stock in a company?

a Stock Broker


What is a stockholder?

It's an organization or person who owns or shares a stock in a company


When a company buys another company what is the stock worth?

The stock value will then be the combined value.


What is it called when a company buys back its own stock?

It is called a stock repurchase and is posted to an account called Treasury Stock, a contra-account in the Equity section.


What type of account is treasury stock?

Treasury stock is a stockholders equity stock. Treasury stock is stock that a company buys back in order to reduce the amount of outstanding stock available on the market.


Does the acquisition of treasury stock increase cash?

Treasury stock is stock that the issuing company buys back from the shareholders. Since the company is buying back its own shares, it decreases cash and stockholder equity, but increases a new balance called "Treasury Stock".


What does a person who buys a stock own?

They own a share of a company.


What does it tell you about the corporation after it buys back its stock?

i think it is oxygen


What is retained earnings a asset?

When a company purchases stocks, it is shown as an investment on the Asset side of the Balance Sheet. However, if a company buys back its own stock, it is shown in the Retained Earnings section of the Balance Sheet as Treasury Stock.


When a company buys or sells stock what is it called?

Brokerage house.