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If companies can do stock buybacks, they theoretically can buy back 100% of the stock, giving ownership of the company to itself, basically its own assets ? I
by ddalex 2y ago
If companies can do stock buybacks, they theoretically can buy back 100% of the stock, giving ownership of the company to itself, basically its own assets ? I dont see the problem.
- vineyardmike 2y agoShare buybacks don’t put shares on the balance sheet. It reduces outstanding share count. It’s the opposite of dilution.
- kgwgk 2y agoYou don't see the problem but after companies repurchase shares the company is always owned by the remaining shareholders - who essentially always own 100% of the stock.
- gamblor956 2y agoA company that buys back all of its stock is treated as liquidating. Nor is it possible in the West for two companies to own 100% of each other's shares (i.e., circular ownership). In most of the West, a subsidiary acquiring its parent's stock is treated as a redemption of those shares (i.e., as if those shares were returned to the parent), assuming the transaction is even allowed.