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What happens to price of stocks when a corporation reduces authorized amount of stocks?
I believe what you are referring to is when a corporation buys back it's own stock resulting in less authorized shares in the marketplace. This doesn't have a direct effect on a stocks price but can typically indirectly cause a stocks price to increase. The reason that it is not direct is that the company must spend it's own money to buy back the stock. This results in less shares and each shareholder now holds a larger stake in the company but the resulting company now either has less cash in it's reserves or has issued debt to pay for the stock. Indirectly this can help the price of the stock. The fact that a company is buying it's own stock back would indicate that the company feels it's own shares are a bargin at the current price. It also adds support to a stocks price in that if the price begins to fall due to market conditions the company can step in and buy shares to prevent or limit continued stock depreciation.
What else can I help you with?
How does the deforestation affect the oxygen cycle?
Deforestation reduces the gross amount of oxygen produced by an ecosystem it reduces the amount of oxygen produced .
What is authorized capital?
Authorized capital is the capital to which an organization is authorised to use in the business and maximum amount that can be used for the working of organization.
What happens to your lungs at high altitudes?
at high altitude you have to breath harder which means you have to breath out more which reduces the amount of acid in the blood. after a few days your kidneys can restore their HP
When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?
face amount reduces and the policy is made for paid-up value
What is a deduction on an income tax form?
a dollar amount that reduces the amount of taxable income...
The process of photosynthesis reduces the amount of?
The process of photosynthesis reduces the amount of carbon dioxide in the atmosphere by converting it into glucose, using sunlight and water as energy sources.
Authorized and issued share capital?
Authorized share capital is that maximum amount of share capital a company can do it’s business and return in article of association of company and company cannot raise more capital then this limit unless changes the limit of authorized capital.Issued share capital is that amount of capital which is issued to public for purchase or invest in company.
What is the amount of authorized share capital?
The amount of authorized share capital refers to the number of stock units that a publicly traded company can issue as stated in its articles of incorporation. It can also be as agreed upon by a shareholder vote.
What effect do photosynthesis have on the amount of carbon dioxide in the air?
it reduces it
Does a debit reduce an account?
Yes it reduces the amount in the account
A process that reduces the amount of damage mining does to ecosystems is?
Reclamation
What happens to the gas pressure if the gas is released from a small container to a large container?
When you release it into the larger container the pressure reduces from the previous amount so the gas can completely fill the larger container.
