Limitations of treasury stock
Treasury stock does not pay a dividend
Treasury stock has no voting rights
Total treasury stock can not exceed the maximum proportion of total capitalization specified by law in the relevant country
When shares are repurchased, they may either be canceled or held for reissue. If not canceled, such shares are referred to as treasury shares. Technically, a repurchased share is a company's own share that has been bought back after having been issued and fully paid.
The possession of treasury shares does not give the company the right to vote, to exercise pre-emptive rights as a shareholder, to receive cash dividends, or to receive assets on company liquidation. Treasury shares are essentially the same as unissued capital and no one advocates classifying unissued share capital as an asset on the balance sheet, as an asset should have probable future economic benefits. Treasury shares simply reduce ordinary share capital.
Foofie wrote:And, who does the higher stock market benefit? The unemployed?
Companies are better capitalized, which means they can start growing and hiring again.
If they bought another company's stock it would show as an asset, correct?
If they buy their own stock, it shows as an asset.
Don't know about cjhsa, but I would make exceedingly large bonus payouts to the people making the dow rise. Perhaps 100-150 Billion dollars in bonus money. I mean, the government has done nothing to get regulations into place, gave investment brokers a trillion dollars to gamble with and now look! The Dow is over 10,000!!! Woohoo!
Maybe you'll think about what it took to get it to rise next time you decide to elect some dribbling moron like your little bum chum the shrub.
Ask Bush . . . he's the one who f*cked the nation without a condom . . .
I'm not obliged to answer your tendentious questions, clown. And i'm entitled to point out the hypocrisy of conservatives who are so eager to blame Mr. Obama for a situation which he did not create, but with which he is now obliged to deal. It's very relevant indeed.