4 ms·

Yes, the shares disappear. A company cannot own itself, at least not directly. If a company had 3 million shares outstanding, then buys back 1 million shares,

Yes, the shares disappear. A company cannot own itself, at least not directly. If a company had 3 million shares outstanding, then buys back 1 million shares, there would then be 2 million shares.

parfe 15y ago
So do the remaining shares own more of the company?
- amorphid 15y ago
  Yes. When a company buys back shares, those who do not sell end up owning a larger percentage. It would be the same if you were paid a dividend and then used that dividend payment to buy additional shares of stock.