Reacquired Stock (Noun)
Meaning
Stock that has been bought back by the issuing corporation and is available for retirement or resale; it is issued but not outstanding; it cannot vote and pays no dividends.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's reacquired stock was held in the treasury and was not considered part of the outstanding shares.
- Reacquired stock is typically used to reduce the number of outstanding shares and increase earnings per share.
- The corporation's decision to reacquire stock was made to prevent a hostile takeover by a rival company.
- Reacquired stock is not entitled to vote or receive dividends, but it can be reissued to employees as part of a stock option plan.
- The company's reacquired stock was valued at a significant premium to the current market price, reflecting its potential for future resale.