2. After a company issues stock, the stock starts trading on
the open market. At times companies need to purchase
their own stock from the stock market.
3. These stocks do not pay any distributions.
have no voting rights
should not be included in shares outstanding calculations.
If treasury stocks retained more than a year, should reduce capital immediately.
If you want to buy more than 5% of your stocks, you should call for a general
assembly.
4. increase the earnings per share since there will be fewer outstanding
shares.
The Treasury shares can be used instead of cash to make required
employee stock options or retirement plan contributions.
re-issue the stock at a later date at a better price.
reducing the company's capital by decide to cancel them.
reducing the company's capital by decide to cancel them.
5. Change the structure of the Board of Directors.
Use indirect dividend to avoid taxes.
Liquidation.
Prevention of Takeovers
