Repurchase of stock

Repurchase of stock

Technique to pay cash to firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. A repurchase is achieved through either a Dutch auction, open market, purchase, or tender offer.

Stock Repurchase Plan

1. See: Buyback.

2. See: Self-tender offer.
References in periodicals archive ?
PPG intends to use net proceeds from the notes offering for general corporate purposes, which may include, among other things, capital expenditures, repayment, redemption or refinancing of debt, repurchase of stock and funding of possible acquisitions.
The company said it received approximately SEK850,000 net in connection with the redemption of the stock option programme adjusted for costs related to repurchase of stock options.
The repurchase of stock was self-funded by the Bank based on its strong earnings performance over the last 3 years and the 100 percent exercising of expiring stock options in late 2015, which provided USD2,793,200 in additional common shareholder equity.'
With PTBS trading 81 percent of book value, the company said the repurchase of stock is a good utilization of internal capital.
Global Banking News-February 3, 2011--Fifth Third completes repurchase of stock offered under TARP(C)2011 ENPublishing - http://www.enpublishing.co.uk
1091 wash-sales rules do not apply to the sale and repurchase of stock or securities if the position is sold at a gain.
The company's performance was hurt to some extent by a 46% jump in interest expenses to $108.3 million, Safeway's debt load escalated to help finance last September's Randall's buy and the repurchase of stock in the fourth quarter of 1999.
Bovin: John Reed from Citibank has been quoted as saying that he looks at excess cash flow on a quarterly basis and whatever he determines needs to be returned to shareholders - where it used to be all paid in dividends - he will now use one-third for dividends and two-thirds for repurchase of stock.
Instead, the creditors' committee's objection was based on the origin of the claim, the repurchase of stock, which in effect was a claim to a shareholder distribution.
In the long run, your earnings grow from retention and change principally from fluctuations in the rate of return, and, to a lesser extent, from three other factors: repurchase of stock, sale of stock above or below book value while earning the same return on the new capital, and the purchase of a company with different P/E ratio in a stock-for-stock deal.
Bank of America Corp (NYSE:BAC) has announced a plan to suspend the repurchase of stock after it found that it has miscalculated its capital levels.
This additional capital distribution will allow CFFN to pay the USD 0.25 per share dividend and continue with its current stock-buyback plan, which currently has USD 129.6 m available for the repurchase of stock.